Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 28, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | HYSTER-YALE MATERIALS HANDLING, INC. | |
Entity Central Index Key | 1,173,514 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Shares Outstanding | 12,461,484 | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Shares Outstanding | 3,929,270 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 84.8 | $ 155.1 |
Accounts receivable, net | 339.4 | 324.1 |
Inventories, net | 376 | 304.6 |
Prepaid expenses and other | 47.9 | 35.1 |
Total Current Assets | 848.1 | 818.9 |
Property, Plant and Equipment, Net | 234.8 | 184.5 |
Intangible Assets | 60.3 | 3.6 |
Goodwill | 53.1 | 0 |
Deferred Income Taxes | 25.8 | 32.7 |
Investment in Unconsolidated Affiliates | 48.6 | 42.9 |
Other Non-current Assets | 25.8 | 13.3 |
Total Assets | 1,296.5 | 1,095.9 |
Current Liabilities | ||
Accounts payable | 331.9 | 279.6 |
Accounts payable, affiliate | 17.9 | 15.8 |
Revolving credit facilities | 21.1 | 0 |
Current maturities of long-term debt | 47.6 | 33.5 |
Accrued payroll | 38.8 | 47.7 |
Accrued warranty obligations | 29.3 | 29.1 |
Other current liabilities | 96 | 99.5 |
Total Current Liabilities | 582.6 | 505.2 |
Long-term Debt | 84.1 | 19.6 |
Self-insurance Liabilities | 18.4 | 17.5 |
Pension Obligations | 17.4 | 22.3 |
Long-term Deferred Tax Liabilities | 11.7 | 0 |
Other Long-term Liabilities | 69.3 | 68.6 |
Total Liabilities | 783.5 | 633.2 |
Common stock: | ||
Capital in excess of par value | 319 | 320.3 |
Treasury stock | (37.2) | (42.5) |
Retained earnings | 353 | 336.7 |
Accumulated other comprehensive loss | (129) | (153.9) |
Total Stockholders' Equity | 506 | 460.8 |
Noncontrolling Interest | 7 | 1.9 |
Total Equity | 513 | 462.7 |
Total Liabilities and Equity | 1,296.5 | 1,095.9 |
Common Class A [Member] | ||
Common stock: | ||
Common stock | 0.1 | 0.1 |
Common Class B [Member] | ||
Common stock: | ||
Common stock | $ 0.1 | $ 0.1 |
Balance Sheet Parenthetical
Balance Sheet Parenthetical - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Common Class A [Member] | ||
Class A Common stock, par value | $ 0.01 | $ 0.01 |
Class A Common stock, shares outstanding | 12,456,291 | 12,377,994 |
Common Class B [Member] | ||
Class A Common stock, par value | $ 0.01 | $ 0.01 |
Class A Common stock, shares outstanding | 3,929,857 | 3,945,822 |
Unaudited Condensed Consolidat4
Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues | $ 629.3 | $ 652.1 | $ 1,879.1 | $ 1,933.1 |
Cost of sales | 524.7 | 545.4 | 1,562.6 | 1,612.9 |
Gross Profit | 104.6 | 106.7 | 316.5 | 320.2 |
Operating Expenses | ||||
Selling, general and administrative expenses | 99.2 | 77.7 | 290 | 242.9 |
Operating Profit | 5.4 | 29 | 26.5 | 77.3 |
Other (income) expense | ||||
Interest expense | 1.9 | 1.3 | 5 | 3.6 |
Income from unconsolidated affiliates | (1.8) | (1.7) | (4.8) | (4.2) |
Other | (1.6) | 1 | (1.3) | 2.4 |
Other (income) expense | (1.5) | 0.6 | (1.1) | 1.8 |
Income from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | 6.9 | 28.4 | 27.6 | 75.5 |
Income tax provision | (5.1) | 7.4 | (2.6) | 17.7 |
Net income | 12 | 21 | 30.2 | 57.8 |
Net (income) loss attributable to noncontrolling interest | 0.3 | (0.1) | 0.4 | (0.3) |
Net Income Attributable to Stockholders | $ 12.3 | $ 20.9 | $ 30.6 | $ 57.5 |
Basic Earnings per Share | $ 0.75 | $ 1.28 | $ 1.87 | $ 3.53 |
Diluted Earnings per Share | 0.75 | 1.28 | 1.86 | 3.52 |
Dividends per Share | $ 0.2950 | $ 0.2850 | $ 0.8750 | $ 0.8450 |
Basic Weighted Average Shares Outstanding | 16,385 | 16,319 | 16,371 | 16,302 |
Diluted Weighted Average Shares Outstanding | 16,439 | 16,360 | 16,420 | 16,347 |
Unaudited Condensed Consolidat5
Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) Statement - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 12 | $ 21 | $ 30.2 | $ 57.8 |
Other comprehensive income (loss) | ||||
Foreign currency translation adjustment | 3.7 | (15.8) | 18.3 | (45.9) |
Current period cash flow hedging activity | (0.6) | (0.6) | 4.9 | (0.8) |
Reclassification of hedging activities into earnings | 0.4 | 0.7 | 0.2 | 1.9 |
Current period pension adjustment | 0 | (0.5) | 0 | (0.5) |
Reclassification of pension into earnings | 0.5 | 0.5 | 1.5 | 1.7 |
Comprehensive Income (Loss) | 16 | 5.3 | 55.1 | 14.2 |
Net (income) loss attributable to noncontrolling interest | 0.3 | (0.1) | 0.4 | (0.3) |
Foreign currency translation adjustment attributable to noncontrolling interests | 0.9 | 0 | 1.9 | 0 |
Comprehensive Income (Loss) Attributable to Stockholders | $ 17.2 | $ 5.2 | $ 57.4 | $ 13.9 |
Unaudited Condensed Consolidat6
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Operating Activities | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 30.2 | $ 57.8 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||
Depreciation and amortization | 28.7 | 22.1 |
Amortization of deferred financing fees | 0.8 | 0.9 |
Deferred income taxes | (0.3) | (3) |
Stock-based compensation | 4 | 2.1 |
Dividends from unconsolidated affiliates | 5.1 | 2.5 |
Other non-current liabilities | (6) | 1.8 |
Other | (9.1) | 4.6 |
Working capital changes: | ||
Accounts receivable | 17.3 | (20.3) |
Inventories | (29.2) | (30) |
Other current assets | 0 | 0.4 |
Accounts payable | 18.3 | (0.9) |
Other current liabilities | (36.9) | (6.7) |
Net cash provided by (used for) operating activities | 22.9 | 31.3 |
Investing Activities | ||
Expenditures for property, plant and equipment | (28.3) | (28.9) |
Proceeds from the sale of assets | 9.5 | 11 |
Payments to Acquire Businesses, Net of Cash Acquired | (107.7) | 0 |
Business acquisition, purchase price adjustment | 0 | (0.9) |
Net cash provided by (used for) investing activities | (126.5) | (17) |
Financing Activities | ||
Additions to long-term debt | 24.8 | 35.2 |
Reductions of long-term debt | (40.1) | (26.1) |
Net change to revolving credit agreements | (59.4) | 0 |
Cash dividends paid | (14.3) | (13.8) |
Payments of Ordinary Dividends, Noncontrolling Interest | (0.2) | 0 |
Payments of Financing Costs | (1.6) | 0 |
Purchase of treasury shares | 0 | (0.1) |
Net cash used for financing activities | 28 | (4.8) |
Effect of exchange rate changes on cash | 5.3 | (6.3) |
Cash and Cash Equivalents | ||
Increase (decrease) for the period | (70.3) | 3.2 |
Balance at the beginning of the period | 155.1 | 111.4 |
Balance at the end of the period | $ 84.8 | $ 114.6 |
Unaudited Condensed Consolidat7
Unaudited Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Millions | Total | Parent [Member] | Common Stock [Member]Common Class A [Member] | Common Stock [Member]Common Class B [Member] | Treasury Stock [Member] | Capital in Excess of Par Value [Member] | Retained Earnings [Member] | Foreign Currency Translation Adjustment [Member] | Deferred Gain (Loss) on Cash Flow Hedging [Member] | Pension Adjustment [Member] | Noncontrolling Interest [Member] |
Balance at Dec. 31, 2014 | $ 456 | $ 454.5 | $ 0.1 | $ 0.1 | $ (49.1) | $ 324.1 | $ 280.4 | $ (40.4) | $ (2) | $ (58.7) | $ 1.5 |
Capital in Excess of Par Value | |||||||||||
Stock-based compensation | 2.1 | 2.1 | 2.1 | ||||||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 0 | 0 | 6.4 | (6.4) | |||||||
Treasury Stock, Value, Acquired, Cost Method | (0.1) | (0.1) | (0.1) | ||||||||
Retained Earnings | |||||||||||
Net Income Attributable to Stockholders | 57.5 | 57.5 | 57.5 | ||||||||
Cash dividends | (13.8) | (13.8) | (13.8) | ||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||
Foreign currency translation adjustment | (45.9) | (45.9) | |||||||||
Deferred gain (loss) on cash flow hedging | (0.8) | (0.8) | |||||||||
Current period pension adjustment | (0.5) | (0.5) | |||||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (47.2) | (47.2) | |||||||||
Reclassification of hedging activities into earnings | 1.9 | 1.9 | |||||||||
Reclassification of pension into earnings | 1.7 | 1.7 | |||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 3.6 | 3.6 | |||||||||
Net (income) loss attributable to noncontrolling interest | 0.3 | 0.3 | |||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 57.8 | ||||||||||
Balance at Sep. 30, 2015 | 458.4 | 456.6 | 0.1 | 0.1 | (42.8) | 319.8 | 324.1 | (86.3) | (0.9) | (57.5) | 1.8 |
Accumulated Other Comprehensive Income (Loss) | |||||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Noncontrolling Interest | 0 | ||||||||||
Balance at Dec. 31, 2015 | 462.7 | 460.8 | 0.1 | 0.1 | (42.5) | 320.3 | 336.7 | (90.1) | (4) | (59.8) | 1.9 |
Capital in Excess of Par Value | |||||||||||
Stock-based compensation | 4 | 4 | 4 | ||||||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 0 | 0 | 5.3 | (5.3) | |||||||
Retained Earnings | |||||||||||
Net Income Attributable to Stockholders | 30.6 | 30.6 | 30.6 | ||||||||
Cash dividends | (14.3) | (14.3) | (14.3) | ||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||
Foreign currency translation adjustment | 18.3 | 18.3 | |||||||||
Deferred gain (loss) on cash flow hedging | 4.9 | 4.9 | |||||||||
Current period pension adjustment | 0 | 0 | |||||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 23.2 | 23.2 | |||||||||
Reclassification of hedging activities into earnings | 0.2 | 0.2 | |||||||||
Reclassification of pension into earnings | 1.5 | 1.5 | |||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 1.7 | 1.7 | |||||||||
Net (income) loss attributable to noncontrolling interest | (0.4) | (0.4) | |||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 30.2 | ||||||||||
Balance at Sep. 30, 2016 | 513 | $ 506 | $ 0.1 | $ 0.1 | $ (37.2) | $ 319 | $ 353 | $ (71.8) | $ 1.1 | $ (58.3) | 7 |
Accumulated Other Comprehensive Income (Loss) | |||||||||||
Noncontrolling Interest, Increase from Business Combination | 69.8 | 69.8 | |||||||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | (62.2) | (62.2) | |||||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (0.2) | (0.2) | |||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Noncontrolling Interest | $ (1.9) | $ (1.9) |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Hyster-Yale Materials Handling, Inc., a Delaware corporation, and the accounts of Hyster-Yale's wholly owned domestic and international subsidiaries and majority-owned joint ventures (collectively, "Hyster-Yale" or the "Company"). All intercompany accounts and transactions among the consolidated companies are eliminated in consolidation. The Company, through its wholly owned subsidiary, Hyster-Yale Group, Inc. ("HYG"), designs, engineers, manufactures, sells and services a comprehensive line of lift trucks and aftermarket parts marketed globally primarily under the Hyster ® and Yale ® brand names, mainly to independent Hyster ® and Yale ® retail dealerships. Lift trucks and component parts are manufactured in the United States, Northern Ireland, Mexico, the Netherlands, the Philippines, Italy, Japan, Vietnam, Brazil and China. The Company also operates Nuvera Fuel Cells, LLC ("Nuvera"). Nuvera is an alternative-power technology company focused on fuel-cell stacks and related systems. Nuvera is also focused on supporting on-site hydrogen production and dispensing systems that are designed to deliver clean energy solutions to customers. On April 1, 2016, the Company completed the indirect acquisition of the majority interest in Bolzoni S.p.A. ("Bolzoni"). On July 6, 2016, the Company completed the acquisition of the remaining outstanding interest in Bolzoni. Bolzoni is a leading worldwide producer of attachments, forks and lift tables under the Bolzoni Auramo and Meyer brand names. Bolzoni products are manufactured in Italy, Germany, Finland, China and the United States. Through the design, production and distribution of a wide range of attachments, Bolzoni has a strong presence in the market niche of lift-truck attachments and industrial material handling. See Note 14 to the unaudited condensed consolidated financial statements for additional information. Investments in Sumitomo NACCO Forklift Co., Ltd. (“SN”), a 50% -owned joint venture, and HYG Financial Services, Inc. ("HYGFS"), a 20% -owned joint venture, are accounted for by the equity method. SN operates manufacturing facilities in Japan, the Philippines and Vietnam from which the Company purchases certain components, service parts and lift trucks. Sumitomo Heavy Industries, Ltd. ("Sumitomo") owns the remaining 50% interest in SN. Each stockholder of SN is entitled to appoint directors representing 50% of the vote of SN’s board of directors. All matters related to policies and programs of operation, manufacturing and sales activities require mutual agreement between the Company and Sumitomo prior to a vote of SN’s board of directors. HYGFS is a joint venture with Wells Fargo Financial Leasing, Inc. (“WF”), formed primarily for the purpose of providing financial services to independent Hyster ® and Yale ® lift truck dealers and National Account customers in the United States. National Account customers are large customers with centralized purchasing and geographically dispersed operations in multiple dealer territories. The Company’s percentage share of the net income or loss from these equity investments is reported on the line “Income from unconsolidated affiliates” in the “Other (income) expense” portion of the unaudited condensed consolidated statements of operations. These financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position of the Company as of September 30, 2016 and the results of its operations for the three and nine months ended September 30, 2016 and 2015 and the results of its cash flows and changes in equity for the nine months ended September 30, 2016 and 2015 have been included. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 . The accompanying unaudited condensed consolidated balance sheet at December 31, 2015 has been derived from the audited financial statements at that date but does not include all of the information or notes required by U.S. generally accepted accounting principles for complete financial statements. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 9 Months Ended |
Sep. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Recently Issued Accounting Standards The following table provides a brief description of recent accounting pronouncements adopted January 1, 2016. The adoption of these standards did not have a material effect on the Company's financial position, results of operations, cash flows or related disclosures. Standard Description ASU No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs The guidance is intended to simplify the presentation of debt issuance costs. The guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU No. 2015-05, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement The guidance clarifies the accounting for cloud computing arrangements including a software license and cloud computing arrangements that do not include a software license that should be accounted for as a service contract. ASU No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments The guidance requires an acquirer to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The guidance requires the acquirer to record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. In addition, the guidance requires an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition. The following table provides a brief description of recent accounting pronouncements not yet adopted: Standard Description Date of Adoption Effect on the financial statements or other significant matters ASU No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern The guidance requires management to evaluate whether there are conditions and events that raise substantial doubt about the entity's ability to continue as a going concern within one year after the financial statements are issued. December 31, 2016 The Company does not expect the adoption of the guidance to have a material effect on its financial position, results of operations, cash flows or related disclosures. ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory The guidance requires inventory to be measured at the lower of cost or net realizable value. The guidance defines net realizable value as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. January 1, 2017 The Company does not expect the adoption of the guidance to have a material effect on its financial position, results of operations, cash flows or related disclosures. ASU No. 2016-07, Investments - Equity Method and Joint Ventures (Topic 323) The guidance eliminates the requirement that an entity retroactively adopt the equity method of accounting if an investment qualifies for use of the equity method as a result of an increase in the level of ownership or degree of influence. In addition, the guidance requires that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. January 1, 2017 The Company is currently evaluating the adoption and the effect on its financial position, results of operations, cash flows and related disclosures. ASU No. 2016-09, Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting The guidance simplifies several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. January 1, 2017 The Company is currently evaluating the adoption and the effect on its financial position, results of operations, cash flows and related disclosures. Standard Description Date of Adoption Effect on the financial statements or other significant matters ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (Subsequent ASUs have been issued in 2015 and 2016 to update or clarify this guidance) The new guidance is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. January 1, 2018 The Company is currently evaluating the alternative methods of adoption and the effect on its financial position, results of operations, cash flows and related disclosures. ASU No. 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities The guidance requires equity investments previously accounted for under the cost method of accounting to be measured at fair value and recognized in net income. In addition, the guidance defines measurement and presentation of financial instruments. January 1, 2018 The Company is currently evaluating the adoption and the effect on its financial position, results of operations, cash flows and related disclosures. ASU No. 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships The guidance clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require dedesignation of that hedging relationship, provided that all other hedge accounting criteria continue to be met. January 1, 2018 The Company is currently evaluating the adoption and the effect on its financial position, results of operations, cash flows and related disclosures. ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments The guidance clarifies the classification of certain types of cash receipts and cash payments. In addition, the guidance provides for the application of the predominance principle when certain cash receipts and payments have aspects of more than one class of cash flows. January 1, 2018 The Company is currently evaluating the adoption and the effect on its financial position, results of operations, cash flows and related disclosures. ASU No. 2016-16, Income Taxes (Topic 740) The guidance allows for recognition of current and deferred income taxes for an intra-entity transfer of an asset other than inventory. The guidance allows for more accurate representation of the economics of an intra-entity asset transfer which will require income tax consequences of the transfer, including income taxes payable or paid. January 1, 2018 The Company is currently evaluating the adoption and the effect on its financial position, results of operations, cash flows and related disclosures. ASU No. 2016-02, Leases (Topic 842) The guidance requires lessees (with the exception of short-term leases) to recognize, at the commencement date, a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. January 1, 2019 The Company is currently evaluating the alternative methods of adoption and the effect on its financial position, results of operations, cash flows and related disclosures. ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326) The guidance eliminates the probable initial recognition threshold and requires an entity to reflect its current estimate of all expected credit losses. The guidance also requires additional disclosures in certain circumstances. January 1, 2020 The Company is currently evaluating the alternative methods of adoption and the effect on its financial position, results of operations, cash flows and related disclosures. |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Business Segments The Company’s reportable segments for the lift truck business include the following three management units: the Americas, EMEA and JAPIC. Americas includes operations in the United States, Canada, Mexico, Brazil, Latin America and the corporate headquarters. EMEA includes operations in Europe, the Middle East and Africa. JAPIC includes operations in the Asia-Pacific region including China, as well as the equity earnings of SN operations. Certain amounts are allocated to these geographic management units and are included in the segment results presented below, including product development costs, corporate headquarter's expenses and certain information technology infrastructure costs. These allocations among geographic management units are determined by senior management and not directly incurred by the geographic operations. In addition, other costs are incurred directly by these geographic management units based upon the location of the manufacturing plant or sales units, including manufacturing variances, product liability, warranty and sales discounts, which may not be associated with the geographic management unit of the ultimate end user sales location where revenues and margins are reported. Therefore, the reported results of each segment for the lift truck business cannot be considered stand-alone entities as all segments are inter-related and integrate into a single global lift truck business. The Company reports the results of Nuvera as a separate segment. In addition, on April 1, 2016, the Company acquired a majority interest in Bolzoni, which is also reported as a separate segment. Given the timing and complexity of the acquisition, the presentation of Bolzoni in the financial statements, including the allocation of the purchase price, is preliminary and may be refined during the measurement period. See Note 14 to the unaudited condensed consolidated financial statements for additional information. Financial information for each reportable segment is presented in the following table: THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 2016 2015 2016 2015 Revenues from external customers Americas $ 408.4 $ 454.1 $ 1,237.4 $ 1,333.9 EMEA 137.1 145.1 439.7 448.9 JAPIC 46.2 52.4 125.0 148.2 Lift truck business 591.7 651.6 1,802.1 1,931.0 Bolzoni 36.2 — 75.1 — Nuvera 1.4 0.5 1.9 2.1 Total $ 629.3 $ 652.1 $ 1,879.1 $ 1,933.1 Gross profit (loss) Americas $ 72.8 $ 78.8 $ 217.8 $ 225.7 EMEA 18.7 22.5 65.1 77.4 JAPIC 4.2 5.6 12.9 18.5 Lift truck business 95.7 106.9 295.8 321.6 Bolzoni 9.2 — 22.0 — Nuvera (0.3 ) (0.2 ) (1.3 ) (1.4 ) Total $ 104.6 $ 106.7 $ 316.5 $ 320.2 Operating profit (loss) Americas $ 23.4 $ 35.5 $ 55.1 $ 83.9 EMEA (1.4 ) 0.2 4.2 12.2 JAPIC (1.5 ) (0.1 ) (4.0 ) (0.3 ) Lift truck business 20.5 35.6 55.3 95.8 Bolzoni (2.5 ) — (1.8 ) — Nuvera (12.6 ) (6.6 ) (27.0 ) (18.5 ) Total $ 5.4 $ 29.0 $ 26.5 $ 77.3 Net income (loss) attributable to stockholders Americas $ 20.2 $ 24.3 $ 43.2 $ 57.9 EMEA 1.9 — 6.4 9.9 JAPIC (0.2 ) 0.6 (0.9 ) 0.8 Lift truck business 21.9 24.9 48.7 68.6 Bolzoni (2.0 ) — (1.9 ) — Nuvera (7.6 ) (4.0 ) (16.2 ) (11.1 ) Total $ 12.3 $ 20.9 $ 30.6 $ 57.5 SEPTEMBER 30 DECEMBER 31 Total assets Americas $ 848.0 $ 680.7 EMEA 430.9 412.0 JAPIC 138.3 140.6 Eliminations (188.3 ) (130.9 ) Lift truck business 1,228.9 1,102.4 Bolzoni 212.9 — Nuvera 33.0 17.4 Eliminations (178.3 ) (23.9 ) Total $ 1,296.5 $ 1,095.9 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | The income tax provision includes U.S. federal, state and local, and foreign income taxes and is based on the application of a forecasted annual income tax rate applied to the current quarter's year-to-date pre-tax income or loss. In determining the estimated annual effective income tax rate, the Company analyzes various factors, including projections of the Company's annual earnings, taxing jurisdictions in which the earnings will be generated, the impact of state and local income taxes, the Company's ability to use tax credits and net operating loss carryforwards and capital loss carryforwards, and available tax planning alternatives. Discrete items, including the effect of changes in tax laws, tax rates and certain circumstances with respect to valuation allowances or the tax effect of other unusual or non-recurring transactions or adjustments are reflected in the period in which they occur as an addition to, or reduction from, the income tax provision, rather than included in the estimated effective annual income tax rate. A reconciliation of the consolidated federal statutory to effective income tax rate is as follows: THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 2016 2015 2016 2015 Income before income taxes $ 6.9 $ 28.4 $ 27.6 $ 75.5 Statutory taxes at 35% $ 2.4 $ 9.9 $ 9.7 $ 26.4 Permanent adjustments: Non-U.S. rate differences (1.9 ) (3.2 ) (4.6 ) (7.0 ) Equity interest earnings (0.4 ) (0.4 ) (1.1 ) (1.0 ) Valuation allowance 0.5 — 1.0 — Federal tax credits (0.6 ) — (1.1 ) — State income taxes (0.1 ) 0.8 0.1 2.0 Other 0.1 0.3 0.3 0.5 $ (2.4 ) $ (2.5 ) $ (5.4 ) $ (5.5 ) Discrete items: Valuation allowance (3.2 ) — (3.2 ) — Provision to return adjustments (2.0 ) (0.6 ) (2.0 ) (0.6 ) Other 0.1 0.6 (1.7 ) (2.6 ) Discrete items $ (5.1 ) $ — $ (6.9 ) $ (3.2 ) Income tax provision (benefit) $ (5.1 ) $ 7.4 $ (2.6 ) $ 17.7 Effective income tax rate (73.9 )% 26.1 % (9.4 )% 23.4 % During the third quarter of 2016, the Company received a notice from the Italian Tax Authority approving the transfer of certain tax losses as part of an internal restructuring. As a result, the Company believes it is more likely than not that deferred tax assets for such losses of approximately $3.2 million will be realized in the foreseeable future, and has released the valuation allowance previously provided. In addition, the Company recognized a discrete tax benefit of $2.0 million , primarily for a U.S. tax benefit for manufacturing activities, adjustments for certain foreign earnings and repatriations, and the research and development credit. Other discrete items during the first nine months of 2016 include a discrete tax benefit of $4.0 million , as a result of the acquisition of Bolzoni, the Company changed its previous reinvestment assertion; consequently, all of the earnings of its European operations are now considered permanently reinvested and the previously provided deferred tax liability is no longer required. In addition, the Company recognized a discrete tax expense of $1.6 million related to non-deductible acquisition expenses. Other discrete items during the nine months ended September 30, 2015 include a discrete tax benefit of $3.7 million from an internal sale of a subsidiary between consolidated companies resulting in the repatriation of non-U.S. accumulated earnings taxed at higher rates. |
Reclassifications Out Of Accumu
Reclassifications Out Of Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2016 | |
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Reclassifications Out of Accumulated Comprehensive Income (Loss) [Text Block] | Reclassifications from OCI The following table summarizes reclassifications out of accumulated other comprehensive income (loss) ("OCI") as recorded in the unaudited condensed consolidated statements of operations: Details about OCI Components Amount Reclassified from OCI Affected Line Item in the Statement Where Net Income Is Presented THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 2016 2015 2016 2015 Gain (loss) on cash flow hedges: Foreign exchange contracts $ (0.9 ) $ (2.1 ) $ (1.8 ) $ (6.5 ) Cost of sales Total before tax (0.9 ) (2.1 ) (1.8 ) (6.5 ) Income before income taxes Tax benefit 0.5 1.4 1.6 4.6 Income tax provision (benefit) Net of tax $ (0.4 ) $ (0.7 ) $ (0.2 ) $ (1.9 ) Net income Amortization of defined benefit pension items: Actuarial loss $ (0.7 ) $ (0.9 ) $ (2.3 ) $ (2.7 ) (a) Prior service credit — — 0.2 0.2 (a) Transition liability — — — (0.1 ) (a) Total before tax (0.7 ) (0.9 ) (2.1 ) (2.6 ) Income before income taxes Tax benefit 0.2 0.4 0.6 0.9 Income tax provision (benefit) Net of tax $ (0.5 ) $ (0.5 ) $ (1.5 ) $ (1.7 ) Net income Total reclassifications for the period $ (0.9 ) $ (1.2 ) $ (1.7 ) $ (3.6 ) (a) These OCI components are included in the computation of net pension cost (see Note 7 for additional details). |
Financial Instruments and Deriv
Financial Instruments and Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Financial Instruments and Derivative Financial Instruments Financial Instruments The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the short-term maturities of these instruments. The fair values of revolving credit agreements and long-term debt, excluding capital leases, were determined using current rates offered for similar obligations taking into account company credit risk. This valuation methodology is Level 2 as defined in the fair value hierarchy. At September 30, 2016 , the fair value and book value of revolving credit agreements and long-term debt, excluding capital leases, was $127.8 million . At December 31, 2015 , the fair value and book value of revolving credit agreements and long-term debt, excluding capital leases, was $32.1 million . Derivative Financial Instruments The Company uses forward foreign currency exchange contracts to partially reduce risks related to transactions denominated in foreign currencies. These contracts hedge firm commitments and forecasted transactions relating to cash flows associated with sales and purchases denominated in non-functional currencies. The Company offsets fair value amounts related to foreign currency exchange contracts executed with the same counterparty. Changes in the fair value of forward foreign currency exchange contracts that are effective as hedges are recorded in OCI. Deferred gains or losses are reclassified from OCI to the unaudited condensed consolidated statements of operations in the same period as the gains or losses from the underlying transactions are recorded and are generally recognized in cost of sales. The ineffective portion of derivatives that are classified as hedges is immediately recognized in earnings and is also generally recognized in cost of sales. Certain of the Company's forward foreign currency contracts were designated as net investment hedges of the Company's net investment in its foreign subsidiaries. For derivative instruments that were designated and qualified as a hedge of a net investment in foreign currency, the gain or loss was reported in other comprehensive income as part of the cumulative translation adjustment to the extent it was effective. The Company utilizes the forward-rate method of assessing hedge effectiveness. Any ineffective portion of net investment hedges would be recognized in the unaudited condensed consolidated statement of operations in the same period as the change. The Company periodically enters into foreign currency exchange contracts that do not meet the criteria for hedge accounting. These derivatives are used to reduce the Company's exposure to foreign currency risk related to forecasted purchase or sales transactions or forecasted intercompany cash payments or settlements. Gains and losses on these derivatives are generally recognized in cost of sales. The Company does not currently hold any nonderivative instruments designated as hedges or any derivatives designated as fair value hedges. The Company has interest rate swap agreements that do not meet the criteria for hedge accounting. The terms of the interest rate swap agreements require the Company to receive a variable interest rate based upon the three-month LIBOR and pay a fixed interest rate. Changes in the fair value of interest rate swap agreements are immediately recognized in earnings and included on the line “Other” in the “Other (income) expense” section of the unaudited condensed consolidated statements of operations. Cash flows from hedging activities are reported in the unaudited condensed consolidated statements of cash flows with the same classification as the hedged item, generally as a component of cash flows from operations. The Company measures its derivatives at fair value on a recurring basis using significant observable inputs. This valuation methodology is Level 2 as defined in the fair value hierarchy. The Company uses a present value technique that incorporates yield curves and foreign currency spot rates to value its derivatives and also incorporates the effect of the Company's and its counterparties' credit risk into the valuation. Foreign Currency Derivatives: The Company held forward foreign currency exchange contracts with total notional amounts of $ 591.7 million at September 30, 2016 , primarily denominated in euros, U.S. dollars, Japanese yen, British pounds, Swedish kroner and Mexican pesos. The Company held forward foreign currency exchange contracts with total notional amounts of $ 634.7 million at December 31, 2015 , primarily denominated in euros, U.S. dollars, Japanese yen, Swedish kroner, British pounds, Mexican pesos and Australian dollars. The fair value of these contracts approximated a net liability of $ 0.1 million and $ 8.8 million at September 30, 2016 and December 31, 2015 , respectively. Forward foreign currency exchange contracts that qualify for hedge accounting are generally used to hedge transactions expected to occur within the next 36 months. The mark-to-market effect of forward foreign currency exchange contracts that are considered effective as hedges has been included in OCI. Based on market valuations at September 30, 2016 , $ 2.2 million of the amount included in OCI is expected to be reclassified as a gain into the unaudited condensed consolidated statement of operations over the next twelve months, as the transactions occur. Interest Rate Derivatives: The Company held interest rate contracts with a total notional amount of $100.0 million at September 30, 2016 . The fair value of interest rate swap agreements was a net liability of $ 1.3 million and $ 0.3 million at September 30, 2016 and December 31, 2015 , respectively. The following table summarizes the fair value of derivative instruments reflected on a gross basis by contract as recorded in the unaudited condensed consolidated balance sheets: Asset Derivatives Liability Derivatives Balance Sheet Location SEPTEMBER 30 DECEMBER 31 Balance Sheet Location SEPTEMBER 30 DECEMBER 31 Derivatives designated as hedging instruments Cash Flow Hedges Foreign currency exchange contracts Current Prepaid expenses and other $ 6.7 $ 2.5 Prepaid expenses and other $ 5.1 $ 0.6 Other current liabilities 0.9 3.2 Other current liabilities 0.3 10.9 Long-term Other non-current assets 0.8 — Other long-term liabilities 1.7 2.1 Total derivatives designated as hedging instruments $ 8.4 $ 5.7 $ 7.1 $ 13.6 Derivatives not designated as hedging instruments Cash Flow Hedges Interest rate swap agreements Current Other current liabilities $ — $ — Other current liabilities $ 0.5 $ 0.6 Long-term Other non-current assets — 0.3 Other long-term liabilities 0.8 — Foreign currency exchange contracts Current Prepaid expenses and other 0.6 1.1 Prepaid expenses and other 0.3 0.3 Other current liabilities 1.2 1.9 Other current liabilities 2.9 3.6 Total derivatives not designated as hedging instruments $ 1.8 $ 3.3 $ 4.5 $ 4.5 Total derivatives $ 10.2 $ 9.0 $ 11.6 $ 18.1 The following table summarizes the offsetting of the fair value of derivative instruments on a gross basis by counterparty as recorded in the unaudited condensed consolidated balance sheets: Derivative Assets as of September 30, 2016 Derivative Liabilities as of September 30, 2016 Gross Amounts of Recognized Assets Gross Amounts Offset Net Amounts Presented Net Amount Gross Amounts of Recognized Liabilities Gross Amounts Offset Net Amounts Presented Net Amount Cash Flow Hedges Interest rate swap agreements $ — $ — $ — $ — $ 1.3 $ — $ 1.3 $ 1.3 Foreign currency exchange contracts 2.7 (2.7 ) — — 2.8 (2.7 ) 0.1 0.1 Total derivatives $ 2.7 $ (2.7 ) $ — $ — $ 4.1 $ (2.7 ) $ 1.4 $ 1.4 Derivative Assets as of December 31, 2015 Derivative Liabilities as of December 31, 2015 Gross Amounts of Recognized Assets Gross Amounts Offset Net Amounts Presented Net Amount Gross Amounts of Recognized Liabilities Gross Amounts Offset Net Amounts Presented Net Amount Cash Flow Hedges Interest rate swap agreements $ 0.3 $ (0.3 ) $ — $ — $ 0.6 $ (0.3 ) $ 0.3 $ 0.3 Foreign currency exchange contracts 2.7 (2.7 ) — — 11.5 (2.7 ) 8.8 8.8 Total derivatives $ 3.0 $ (3.0 ) $ — $ — $ 12.1 $ (3.0 ) $ 9.1 $ 9.1 The following table summarizes the pre-tax impact of derivative instruments as recorded in the unaudited condensed consolidated statements of operations: Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) Location of Gain or (Loss) Reclassified from OCI into Income (Effective Portion) Amount of Gain or (Loss) Reclassified from OCI into Income (Effective Portion) Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) THREE MONTHS ENDED NINE MONTHS ENDED THREE MONTHS ENDED NINE MONTHS ENDED THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 SEPTEMBER 30 Derivatives designated as hedging instruments 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 Cash Flow Hedges Foreign currency exchange contracts $ (0.7 ) $ (1.1 ) $ 7.7 $ (4.1 ) Cost of sales $ (0.9 ) $ (2.1 ) $ (1.8 ) $ (6.5 ) Cost of sales $ (0.1 ) $ — $ (0.2 ) $ — Total $ (0.7 ) $ (1.1 ) $ 7.7 $ (4.1 ) $ (0.9 ) $ (2.1 ) $ (1.8 ) $ (6.5 ) $ (0.1 ) $ — $ (0.2 ) $ — Amount of Gain or (Loss) Recognized in Income on Derivative THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 Derivatives Not Designated as Hedging Instruments Location of Gain or (Loss) Recognized in Income on Derivative 2016 2015 2016 2015 Cash Flow Hedges Interest rate swap agreements Other $ 0.5 $ (1.0 ) $ (1.2 ) $ (1.6 ) Foreign currency exchange contracts Cost of sales (0.2 ) 2.7 0.3 2.4 Total $ 0.3 $ 1.7 $ (0.9 ) $ 0.8 |
Retirement Benefit Plans
Retirement Benefit Plans | 9 Months Ended |
Sep. 30, 2016 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Retirement Benefit Plans The Company maintains various defined benefit pension plans that provide benefits based on years of service and average compensation during certain periods. The Company's policy is to make contributions to fund these plans within the range allowed by applicable regulations. Plan assets consist primarily of publicly traded stocks and government and corporate bonds. Pension benefits for employees covered under the Company's U.S. and U.K. plans are frozen. Only certain grandfathered employees in the Netherlands still earn retirement benefits under a defined benefit pension plan. All other eligible employees of the Company, including employees whose pension benefits are frozen, receive retirement benefits under defined contribution retirement plans. During the third quarter of 2015, the Company recognized a settlement loss of $1.2 million resulting from lump-sum distributions exceeding the total projected interest cost for the plan year for one of its U.S. pension plans. The components of pension (income) expense are set forth below: THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 2016 2015 2016 2015 U.S. Pension Service cost $ — $ — $ — $ — Interest cost 0.7 0.7 2.2 2.2 Expected return on plan assets (1.3 ) (1.4 ) (3.7 ) (4.2 ) Settlement loss — 1.2 — 1.2 Amortization of actuarial loss 0.4 0.4 1.2 1.2 Amortization of prior service credit — — (0.2 ) (0.2 ) Total $ (0.2 ) $ 0.9 $ (0.5 ) $ 0.2 Non-U.S. Pension Service cost $ — $ — $ 0.1 $ 0.1 Interest cost 1.2 1.4 3.8 4.2 Expected return on plan assets (2.1 ) (2.4 ) (6.7 ) (7.2 ) Amortization of actuarial loss 0.3 0.5 1.1 1.5 Amortization of transition liability — — — 0.1 Total $ (0.6 ) $ (0.5 ) $ (1.7 ) $ (1.3 ) |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | Inventories Inventories are summarized as follows: SEPTEMBER 30 DECEMBER 31 Finished goods and service parts $ 184.3 $ 153.0 Raw materials and work in process 230.8 192.0 Total manufactured inventories 415.1 345.0 LIFO reserve (39.1 ) (40.4 ) Total inventory $ 376.0 $ 304.6 The cost of certain manufactured inventories, including service parts, has been determined using the last-in-first-out (“LIFO”) method. At September 30, 2016 and December 31, 2015 , 53% and 58% , respectively, of total inventories were determined using the LIFO method. An actual valuation of inventory under the LIFO method can be made only at the end of the year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations must be based on management's estimates of expected year-end inventory levels and costs. Because these estimates are subject to change and may be different than the actual inventory levels and costs at the end of the year, interim results are subject to the final year-end LIFO inventory valuation. |
Current and Long Term Financing
Current and Long Term Financing | 9 Months Ended |
Sep. 30, 2016 | |
Line of Credit Facility [Line Items] | |
Debt Disclosure [Text Block] | Current and Long-Term Financing On April 28, 2016, the Company amended and restated its revolving credit facility to provide for a $240.0 million secured, floating-rate revolving credit facility (the "Facility”) that expires in April 2021. There was $54.0 million outstanding under the facility at September 30, 2016 . The excess availability under the Facility, at September 30, 2016 , was $168.9 million , which reflects reductions of $17.1 million for letters of credit and other restrictions. The Facility consists of a U.S. revolving credit facility in the initial amount of $140.0 million and a non-U.S. revolving credit facility in the initial amount of $100.0 million. The Facility can be increased up to $340.0 million over the term of the agreement in minimum increments of $10.0 million subject to certain conditions. The obligations under the Facility are generally secured by a lien on the working capital assets of the borrowers in the Facility, which include but are not limited to, cash and cash equivalents, accounts receivable and inventory. The approximate book value of assets held as collateral under the Facility was $495 million as of September 30, 2016 . Borrowings bear interest at a floating rate based on a base rate or LIBOR, as defined in the Facility, plus an applicable margin. The applicable margins, effective September 30, 2016 , for U.S. base rate loans and LIBOR loans were 0.50% and 1.50% , respectively. The applicable margins, effective September 30, 2016 , for non-U.S. base rate loans and LIBOR loans was 1.50% . The applicable LIBOR interest rates under the Facility on September 30, 2016 were 2.00% and 1.50% , respectively, for the U.S. and non-U.S. facility including the applicable floating rate margin. The interest rate under the Facility on September 30, 2016 was 2.00% including the applicable floating rate margin. The Facility also requires the payment of a fee of 0.350% per annum on the unused commitment as of September 30, 2016 . The Facility includes restrictive covenants, which, among other things, limit additional borrowings and investments of the Company and its subsidiaries subject to certain thresholds, as defined in the Facility, and limits the payment of dividends. If the minimum availability threshold, as defined in the Facility, is greater than fifteen percent and less than twenty percent for both total and U.S. revolving credit facilities, the Company may pay dividends subject to maintaining a certain level of availability prior to and upon payment of a dividend and achieving a minimum fixed charge coverage ratio of 1.00 to 1.00, as defined in the Facility. If the minimum availability threshold, as defined in the Facility, is greater than twenty percent for both total and U.S. revolving credit facilities, the Company may pay dividends without any minimum fixed charge coverage ratio requirement. The Facility also requires the Company to achieve a minimum fixed charge coverage ratio in certain circumstances in which total excess availability is less than ten percent of the total commitments under the Facility or excess availability under the U.S. revolving credit facility is less than ten percent of the U.S. revolver commitments, as defined in the Facility. At September 30, 2016, the Company was in compliance with the covenants in the Facility. The Company had other debt outstanding, excluding capital leases, of approximately $73.8 million at September 30, 2016 , which includes the outstanding debt of Bolzoni. During 2016, the Company incurred fees and expenses of $1.6 million related to the Facility. These fees were deferred and are being amortized as interest expense over the term of the Facility. |
Product Warranties
Product Warranties | 9 Months Ended |
Sep. 30, 2016 | |
Product Warranties Disclosures [Abstract] | |
Product Warranty Disclosure [Text Block] | Product Warranties The Company provides a standard warranty on its lift trucks, generally for twelve months or 1,000 to 2,000 hours . For certain components in some series of lift trucks, the Company provides a standard warranty of two to three years or 4,000 to 6,000 hours . The Company estimates the costs which may be incurred under its standard warranty programs and records a liability for such costs at the time product revenue is recognized. In addition, the Company sells separately-priced extended warranty agreements for its lift trucks, which generally provide a warranty for an additional two to five years or up to 2,400 to 10,000 hours . The specific terms and conditions of those warranties vary depending upon the product sold and the country in which the Company does business. Revenue received for the sale of extended warranty contracts is deferred and recognized in the same manner as the costs incurred to perform under the warranty contracts. The Company also maintains a quality enhancement program under which it provides for specifically identified field product improvements in its warranty obligation. Accruals under this program are determined based on estimates of the potential number of claims and the cost of those claims based on historical costs. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. Factors that affect the warranty liability include the number of units sold, historical and anticipated rates of warranty claims and the cost per claim. Changes in the Company's current and long-term warranty obligations, including deferred revenue on extended warranty contracts, are as follows: 2016 Balance at January 1 $ 55.5 Current year warranty expense 25.2 Change in estimate related to pre-existing warranties (5.9 ) Payments made (22.2 ) Foreign currency effect 0.3 Balance at September 30 $ 52.9 |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Contingencies Various legal and regulatory proceedings and claims have been or may be asserted against the Company relating to the conduct of its businesses, including product liability, environmental and other claims. These proceedings and claims are incidental to the ordinary course of business. Management believes that it has meritorious defenses and will vigorously defend the Company in these actions. Any costs that management estimates will be paid as a result of these claims are accrued when the liability is considered probable and the amount can be reasonably estimated. Although the ultimate disposition of these proceedings is not presently determinable, management believes, after consultation with its legal counsel, that the likelihood is remote that costs will be incurred materially in excess of accruals already recognized. |
Guarantees
Guarantees | 9 Months Ended |
Sep. 30, 2016 | |
Guarantees [Abstract] | |
Schedule of Guarantor Obligations [Text Block] | Guarantees Under various financing arrangements for certain customers, including independent retail dealerships, the Company provides recourse or repurchase obligations such that it would be obligated in the event of default by the customer. Terms of the third-party financing arrangements for which the Company is providing recourse or repurchase obligations generally range from one to five years. Total amounts subject to recourse or repurchase obligations at September 30, 2016 and December 31, 2015 were $165.3 million and $179.8 million , respectively. As of September 30, 2016 , losses anticipated under the terms of the recourse or repurchase obligations were not significant and reserves have been provided for such losses based on historical experience in the accompanying unaudited condensed consolidated financial statements. The Company generally retains a security interest in the related assets financed such that, in the event the Company would become obligated under the terms of the recourse or repurchase obligations, the Company would take title to the assets financed. The fair value of collateral held at September 30, 2016 was approximately $210.4 million based on Company estimates. The Company estimates the fair value of the collateral using information regarding the original sales price, the current age of the equipment and general market conditions that influence the value of both new and used lift trucks. The Company also regularly monitors the external credit ratings of the entities for which it has provided recourse or repurchase obligations. As of September 30, 2016 , the Company did not believe there was a significant risk of non-payment or non-performance of the obligations by these entities; however, there can be no assurance that the risk may not increase in the future. In addition, the Company has an agreement with WF to limit its exposure to losses at certain eligible dealers. Under this agreement, losses related to $34.4 million of recourse or repurchase obligations for these certain eligible dealers are limited to 7.5% of their original loan balance, or $7.5 million as of September 30, 2016 . The $34.4 million is included in the $165.3 million of total amounts subject to recourse or repurchase obligations at September 30, 2016 . Generally, the Company sells lift trucks through its independent dealer network or directly to customers. These dealers and customers may enter into a financing transaction with HYGFS or other unrelated third parties. HYGFS provides debt and lease financing to both dealers and customers. On occasion, the credit quality of a customer or credit concentration issues within WF may require the Company to provide recourse or repurchase obligations of the lift trucks purchased by customers and financed through HYGFS. At September 30, 2016 , approximately $135.7 million of the Company's total recourse or repurchase obligations of $165.3 million related to transactions with HYGFS. In connection with the joint venture agreement, the Company also provides a guarantee to WF for 20% of HYGFS’ debt with WF, such that the Company would become liable under the terms of HYGFS’ debt agreements with WF in the case of default by HYGFS. At September 30, 2016 , loans from WF to HYGFS totaled $1.0 billion . Although the Company’s contractual guarantee was $205.7 million , the loans by WF to HYGFS are secured by HYGFS’ customer receivables, of which the Company guarantees $135.7 million . Excluding the HYGFS receivables guaranteed by the Company from HYGFS’ loans to WF, the Company’s incremental obligation as a result of this guarantee to WF is $183.9 million , which is secured by 20% of HYGFS' customer receivables and other secured assets of $221.2 million . HYGFS has not defaulted under the terms of this debt financing in the past, and although there can be no assurances, the Company is not aware of any circumstances that would cause HYGFS to default in future periods. The following table includes the exposure amounts related to the Company's guarantees at September 30, 2016 : HYGFS Total Total recourse or repurchase obligations $ 135.7 $ 165.3 Less: exposure limited for certain dealers 34.4 34.4 Plus: 7.5% of original loan balance 7.5 7.5 108.8 138.4 Incremental obligation related to guarantee to WF 183.9 183.9 Total exposure related to guarantees $ 292.7 $ 322.3 |
Equity Investments
Equity Investments | 9 Months Ended |
Sep. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments Disclosure [Text Block] | Equity Investments The Company maintains an interest in one variable interest entity, HYGFS. HYGFS is a joint venture with WF formed primarily for the purpose of providing financial services to independent Hyster ® and Yale ® lift truck dealers and National Account customers in the United States and is included in the Americas segment. The Company does not have a controlling financial interest or have the power to direct the activities that most significantly affect the economic performance of HYGFS. Therefore, the Company has concluded that the Company is not the primary beneficiary and uses the equity method to account for its 20% interest in HYGFS. The Company does not consider its variable interest in HYGFS to be significant. The Company has a 50% ownership interest in SN, a limited liability company which was formed primarily to manufacture and distribute Sumitomo-branded lift trucks in Japan and export Hyster ® - and Yale ® -branded lift trucks and related components and service parts outside of Japan. The Company purchases products from SN under agreed-upon terms. The Company's ownership in SN is also accounted for using the equity method of accounting and is included in the JAPIC segment. The Company's percentage share of the net income or loss from its equity investments in HYGFS and SN is reported on the line “Income from unconsolidated affiliates” in the “Other (income) expense” section of the unaudited condensed consolidated statements of operations. The Company's equity investments are included on the line “Investment in Unconsolidated Affiliates” in the unaudited condensed consolidated balance sheets. At September 30, 2016 and December 31, 2015 , the Company's investment in HYGFS was $12.6 million and $14.8 million , respectively. The Company's investment in SN was $35.5 million and $28.1 million at September 30, 2016 and December 31, 2015 , respectively. Bolzoni's investment in unconsolidated affiliates was $0.5 million at September 30, 2016 . Summarized financial information for HYGFS and SN is as follows: THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 2016 2015 2016 2015 Revenues $ 89.3 $ 79.3 $ 259.1 $ 236.3 Gross profit $ 27.8 $ 23.4 $ 79.6 $ 71.8 Income from continuing operations $ 6.0 $ 5.6 $ 17.1 $ 15.6 Net income $ 6.0 $ 5.6 $ 17.1 $ 15.6 |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Subsequent Events [Text Block] | On April 1, 2016, the Company's indirect wholly owned subsidiary, Hyster-Yale Capital Holding Italy S.r.l. (“HY Italy”), acquired 100% of the outstanding shares of Penta Holding S.p.A. ("Penta") from its shareholders for an aggregate cash purchase price of €53.5 million (approximately $60.9 million as of April 1, 2016), which includes the value of the majority stake (approximately 50.5% ) of Bolzoni owned by Penta, as well as Penta's other assets and other liabilities. Subsequent to the completion of the acquisition of Penta, HY Italy, in compliance with Italian law and CONSOB regulations, commenced the steps to launch a mandatory tender offer in Italy for all of the remaining outstanding shares of Bolzoni, with the intention to achieve the delisting of Bolzoni following completion of the mandatory tender offer and the processes related thereto. During the second and third quarters of 2016, HY Italy acquired the remaining outstanding interest in Bolzoni for €55.4 million or approximately $62.2 million , which was funded using cash on hand and borrowings under the Facility. On July 6, 2016, Bolzoni was delisted from the Italian stock exchange. The acquisition of Bolzoni adds a broader range of forklift truck attachments, forks and lift tables to the Company's suite of products and provides an important platform for additional growth. The acquisition of Bolzoni has been accounted for using the acquisition method of accounting, which requires, among other things, the assets acquired and liabilities assumed be recognized at their respective fair values as of the acquisition date. Acquisition accounting is dependent upon certain valuations and other studies that have yet to progress to a stage where there is sufficient information for a definitive measurement. The process of estimating the fair values of intangible assets and certain tangible assets and assumed liabilities requires the use of judgment in determining the appropriate assumptions and estimates. Given the timing and complexity of the Bolzoni acquisition, the allocation of the purchase price is preliminary and may be further refined during the measurement period. The following table summarizes the preliminary estimated fair values of the assets acquired and the liabilities assumed of Bolzoni as of April 1, 2016: Acquired Assets and Liabilities Preliminary Fair Value Cash $ 8.0 Accounts receivable 34.0 Inventories 31.5 Property, plant and equipment 43.3 Intangible Assets 54.8 Other assets 0.5 Total assets acquired $ 172.1 Accounts payable 32.7 Total debt 44.3 Long-term deferred tax liabilities 11.5 Other liabilities 8.0 Total liabilities assumed $ 96.5 Noncontrolling interest 5.7 Net assets acquired $ 69.9 Initial purchase price $ 60.9 Interest acquired in mandatory tender offer $ 63.2 Goodwill $ 54.2 Acquired Intangible Assets Preliminary Fair Value Weighted-Average Useful Lives (Years) Customer relationships $ 22.1 13 Trademarks 17.1 Indefinite Engineering drawings 12.5 10 Patents 2.1 10 Non-compete agreement 1.0 3 Total $ 54.8 In addition, the assignment of acquired goodwill to reporting units has not been determined. The $54.2 million of goodwill was assigned to the Bolzoni segment. The goodwill recognized is attributable primarily to expected synergies and the assembled workforce of Bolzoni. None of the goodwill is expected to be deductible for income tax purposes. The results of Bolzoni’s operations have been included in the consolidated financial statements since the acquisition date and are reflected in the Bolzoni segment. Subsequent to the filing of the Company's Quarterly Report on Form 10-Q for the period ended June 30, 2016, the Company received a revised valuation report from a third-party valuation firm. After considering the results of that valuation report and other information, the Company estimated the following changes to assets acquired and liabilities assumed due to this new information with a corresponding decrease to goodwill. Acquired Assets and Liabilities Increase/(Decrease) in Fair Value Inventory $ 2.2 Property, plant and equipment (0.8 ) Intangible assets 3.4 Other liabilities 0.4 Noncontrolling interest 0.9 Goodwill (6.1 ) In addition, the change to the estimated fair value of acquired tangible and intangible assets resulted in an increase in depreciation and amortization expense and accumulated depreciation and amortization of $2.3 million , of which $0.4 million relates to the second quarter of 2016. The change to the estimated value of inventory resulted in an increase in cost of sales of $2.2 million , which all relates to the second quarter of 2016. In April 2016, the Company entered into a non-cash working capital transaction to acquire a telematics installation and distribution business with intangibles of approximately $8.1 million . The results of operations of this acquired business have been included in the America's segment since the date of acquisition and are not material to the Company's results of operations, financial position or cash flows. The Company also recognized $6.1 million of acquisition-related costs during 2016, which is included in the Americas segment. These costs are included in the line “Selling, general and administrative expenses” in the Consolidated Statement of Operations. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill and Intangible Assets The following table summarizes intangible assets, other than goodwill, recorded in the unaudited condensed consolidated balance sheets: September 30, 2016 Gross Carrying Amount Accumulated Amortization Net Balance Intangible assets not subject to amortization Trademarks $ 16.8 $ — $ 16.8 Intangible assets subject to amortization Customer and contractual relationships 29.1 (2.1 ) 27.0 Patents and technology 17.0 (1.6 ) 15.4 Trademarks 1.2 (0.1 ) 1.1 Total $ 64.1 $ (3.8 ) $ 60.3 December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Balance Customer and contractual relationships $ 0.1 $ — $ 0.1 Patents and technology 2.8 (0.4 ) 2.4 Trademarks 1.2 (0.1 ) 1.1 Total $ 4.1 $ (0.5 ) $ 3.6 The following table summarizes goodwill by segment, recorded in the unaudited condensed consolidated balance sheets: Carrying Amount of Goodwill Americas Bolzoni Total Balance at January 1, 2016 $ — $ — $ — Additions 1.7 54.2 55.9 Foreign currency translation — (2.8 ) (2.8 ) Balance at September 30, 2016 $ 1.7 $ 51.4 $ 53.1 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | These financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position of the Company as of September 30, 2016 and the results of its operations for the three and nine months ended September 30, 2016 and 2015 and the results of its cash flows and changes in equity for the nine months ended September 30, 2016 and 2015 have been included. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 . The accompanying unaudited condensed consolidated balance sheet at December 31, 2015 has been derived from the audited financial statements at that date but does not include all of the information or notes required by U.S. generally accepted accounting principles for complete financial statements. |
Recently Issued Accounting St24
Recently Issued Accounting Standards Recently Issued Accounting Standards (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Standard Description ASU No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs The guidance is intended to simplify the presentation of debt issuance costs. The guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU No. 2015-05, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement The guidance clarifies the accounting for cloud computing arrangements including a software license and cloud computing arrangements that do not include a software license that should be accounted for as a service contract. ASU No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments The guidance requires an acquirer to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The guidance requires the acquirer to record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. In addition, the guidance requires an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition. |
Description of New Accounting Pronouncements Not yet Adopted [Policy Text Block] | Standard Description Date of Adoption Effect on the financial statements or other significant matters ASU No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern The guidance requires management to evaluate whether there are conditions and events that raise substantial doubt about the entity's ability to continue as a going concern within one year after the financial statements are issued. December 31, 2016 The Company does not expect the adoption of the guidance to have a material effect on its financial position, results of operations, cash flows or related disclosures. ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory The guidance requires inventory to be measured at the lower of cost or net realizable value. The guidance defines net realizable value as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. January 1, 2017 The Company does not expect the adoption of the guidance to have a material effect on its financial position, results of operations, cash flows or related disclosures. ASU No. 2016-07, Investments - Equity Method and Joint Ventures (Topic 323) The guidance eliminates the requirement that an entity retroactively adopt the equity method of accounting if an investment qualifies for use of the equity method as a result of an increase in the level of ownership or degree of influence. In addition, the guidance requires that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. January 1, 2017 The Company is currently evaluating the adoption and the effect on its financial position, results of operations, cash flows and related disclosures. ASU No. 2016-09, Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting The guidance simplifies several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. January 1, 2017 The Company is currently evaluating the adoption and the effect on its financial position, results of operations, cash flows and related disclosures. Standard Description Date of Adoption Effect on the financial statements or other significant matters ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (Subsequent ASUs have been issued in 2015 and 2016 to update or clarify this guidance) The new guidance is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. January 1, 2018 The Company is currently evaluating the alternative methods of adoption and the effect on its financial position, results of operations, cash flows and related disclosures. ASU No. 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities The guidance requires equity investments previously accounted for under the cost method of accounting to be measured at fair value and recognized in net income. In addition, the guidance defines measurement and presentation of financial instruments. January 1, 2018 The Company is currently evaluating the adoption and the effect on its financial position, results of operations, cash flows and related disclosures. ASU No. 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships The guidance clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require dedesignation of that hedging relationship, provided that all other hedge accounting criteria continue to be met. January 1, 2018 The Company is currently evaluating the adoption and the effect on its financial position, results of operations, cash flows and related disclosures. ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments The guidance clarifies the classification of certain types of cash receipts and cash payments. In addition, the guidance provides for the application of the predominance principle when certain cash receipts and payments have aspects of more than one class of cash flows. January 1, 2018 The Company is currently evaluating the adoption and the effect on its financial position, results of operations, cash flows and related disclosures. ASU No. 2016-16, Income Taxes (Topic 740) The guidance allows for recognition of current and deferred income taxes for an intra-entity transfer of an asset other than inventory. The guidance allows for more accurate representation of the economics of an intra-entity asset transfer which will require income tax consequences of the transfer, including income taxes payable or paid. January 1, 2018 The Company is currently evaluating the adoption and the effect on its financial position, results of operations, cash flows and related disclosures. ASU No. 2016-02, Leases (Topic 842) The guidance requires lessees (with the exception of short-term leases) to recognize, at the commencement date, a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. January 1, 2019 The Company is currently evaluating the alternative methods of adoption and the effect on its financial position, results of operations, cash flows and related disclosures. ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326) The guidance eliminates the probable initial recognition threshold and requires an entity to reflect its current estimate of all expected credit losses. The guidance also requires additional disclosures in certain circumstances. January 1, 2020 The Company is currently evaluating the alternative methods of adoption and the effect on its financial position, results of operations, cash flows and related disclosures. |
Financial Instruments and Der25
Financial Instruments and Derivative Financial Instruments (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives, Policy [Policy Text Block] | Certain of the Company's forward foreign currency contracts were designated as net investment hedges of the Company's net investment in its foreign subsidiaries. For derivative instruments that were designated and qualified as a hedge of a net investment in foreign currency, the gain or loss was reported in other comprehensive income as part of the cumulative translation adjustment to the extent it was effective. The Company utilizes the forward-rate method of assessing hedge effectiveness. Any ineffective portion of net investment hedges would be recognized in the unaudited condensed consolidated statement of operations in the same period as the change. The Company periodically enters into foreign currency exchange contracts that do not meet the criteria for hedge accounting. These derivatives are used to reduce the Company's exposure to foreign currency risk related to forecasted purchase or sales transactions or forecasted intercompany cash payments or settlements. Gains and losses on these derivatives are generally recognized in cost of sales. The Company does not currently hold any nonderivative instruments designated as hedges or any derivatives designated as fair value hedges. The Company has interest rate swap agreements that do not meet the criteria for hedge accounting. The terms of the interest rate swap agreements require the Company to receive a variable interest rate based upon the three-month LIBOR and pay a fixed interest rate. Changes in the fair value of interest rate swap agreements are immediately recognized in earnings and included on the line “Other” in the “Other (income) expense” section of the unaudited condensed consolidated statements of operations. Cash flows from hedging activities are reported in the unaudited condensed consolidated statements of cash flows with the same classification as the hedged item, generally as a component of cash flows from operations. The Company measures its derivatives at fair value on a recurring basis using significant observable inputs. This valuation methodology is Level 2 as defined in the fair value hierarchy. The Company uses a present value technique that incorporates yield curves and foreign currency spot rates to value its derivatives and also incorporates the effect of the Company's and its counterparties' credit risk into the valuation. |
Product Warranties (Policies)
Product Warranties (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Product Liability Contingency [Line Items] | |
Standard Product Warranty, Policy [Policy Text Block] | The Company provides a standard warranty on its lift trucks, generally for twelve months or 1,000 to 2,000 hours . For certain components in some series of lift trucks, the Company provides a standard warranty of two to three years or 4,000 to 6,000 hours . The Company estimates the costs which may be incurred under its standard warranty programs and records a liability for such costs at the time product revenue is recognized. |
Extended Product Warranty, Policy [Policy Text Block] | In addition, the Company sells separately-priced extended warranty agreements for its lift trucks, which generally provide a warranty for an additional two to five years or up to 2,400 to 10,000 hours . The specific terms and conditions of those warranties vary depending upon the product sold and the country in which the Company does business. Revenue received for the sale of extended warranty contracts is deferred and recognized in the same manner as the costs incurred to perform under the warranty contracts. |
Equity Investments (Policies)
Equity Investments (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Consolidation, Variable Interest Entity, Policy [Policy Text Block] | The Company maintains an interest in one variable interest entity, HYGFS. HYGFS is a joint venture with WF formed primarily for the purpose of providing financial services to independent Hyster ® and Yale ® lift truck dealers and National Account customers in the United States and is included in the Americas segment. The Company does not have a controlling financial interest or have the power to direct the activities that most significantly affect the economic performance of HYGFS. Therefore, the Company has concluded that the Company is not the primary beneficiary and uses the equity method to account for its 20% interest in HYGFS. The Company does not consider its variable interest in HYGFS to be significant. |
Recently Issued Accounting St28
Recently Issued Accounting Standards Recently Issued Accounting Standards (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | Standard Description ASU No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs The guidance is intended to simplify the presentation of debt issuance costs. The guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU No. 2015-05, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement The guidance clarifies the accounting for cloud computing arrangements including a software license and cloud computing arrangements that do not include a software license that should be accounted for as a service contract. ASU No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments The guidance requires an acquirer to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The guidance requires the acquirer to record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. In addition, the guidance requires an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition. The following table provides a brief description of recent accounting pronouncements not yet adopted: Standard Description Date of Adoption Effect on the financial statements or other significant matters ASU No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern The guidance requires management to evaluate whether there are conditions and events that raise substantial doubt about the entity's ability to continue as a going concern within one year after the financial statements are issued. December 31, 2016 The Company does not expect the adoption of the guidance to have a material effect on its financial position, results of operations, cash flows or related disclosures. ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory The guidance requires inventory to be measured at the lower of cost or net realizable value. The guidance defines net realizable value as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. January 1, 2017 The Company does not expect the adoption of the guidance to have a material effect on its financial position, results of operations, cash flows or related disclosures. ASU No. 2016-07, Investments - Equity Method and Joint Ventures (Topic 323) The guidance eliminates the requirement that an entity retroactively adopt the equity method of accounting if an investment qualifies for use of the equity method as a result of an increase in the level of ownership or degree of influence. In addition, the guidance requires that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. January 1, 2017 The Company is currently evaluating the adoption and the effect on its financial position, results of operations, cash flows and related disclosures. ASU No. 2016-09, Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting The guidance simplifies several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. January 1, 2017 The Company is currently evaluating the adoption and the effect on its financial position, results of operations, cash flows and related disclosures. Standard Description Date of Adoption Effect on the financial statements or other significant matters ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (Subsequent ASUs have been issued in 2015 and 2016 to update or clarify this guidance) The new guidance is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. January 1, 2018 The Company is currently evaluating the alternative methods of adoption and the effect on its financial position, results of operations, cash flows and related disclosures. ASU No. 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities The guidance requires equity investments previously accounted for under the cost method of accounting to be measured at fair value and recognized in net income. In addition, the guidance defines measurement and presentation of financial instruments. January 1, 2018 The Company is currently evaluating the adoption and the effect on its financial position, results of operations, cash flows and related disclosures. ASU No. 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships The guidance clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require dedesignation of that hedging relationship, provided that all other hedge accounting criteria continue to be met. January 1, 2018 The Company is currently evaluating the adoption and the effect on its financial position, results of operations, cash flows and related disclosures. ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments The guidance clarifies the classification of certain types of cash receipts and cash payments. In addition, the guidance provides for the application of the predominance principle when certain cash receipts and payments have aspects of more than one class of cash flows. January 1, 2018 The Company is currently evaluating the adoption and the effect on its financial position, results of operations, cash flows and related disclosures. ASU No. 2016-16, Income Taxes (Topic 740) The guidance allows for recognition of current and deferred income taxes for an intra-entity transfer of an asset other than inventory. The guidance allows for more accurate representation of the economics of an intra-entity asset transfer which will require income tax consequences of the transfer, including income taxes payable or paid. January 1, 2018 The Company is currently evaluating the adoption and the effect on its financial position, results of operations, cash flows and related disclosures. ASU No. 2016-02, Leases (Topic 842) The guidance requires lessees (with the exception of short-term leases) to recognize, at the commencement date, a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. January 1, 2019 The Company is currently evaluating the alternative methods of adoption and the effect on its financial position, results of operations, cash flows and related disclosures. ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326) The guidance eliminates the probable initial recognition threshold and requires an entity to reflect its current estimate of all expected credit losses. The guidance also requires additional disclosures in certain circumstances. January 1, 2020 The Company is currently evaluating the alternative methods of adoption and the effect on its financial position, results of operations, cash flows and related disclosures. |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Financial information for each reportable segment is presented in the following table: THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 2016 2015 2016 2015 Revenues from external customers Americas $ 408.4 $ 454.1 $ 1,237.4 $ 1,333.9 EMEA 137.1 145.1 439.7 448.9 JAPIC 46.2 52.4 125.0 148.2 Lift truck business 591.7 651.6 1,802.1 1,931.0 Bolzoni 36.2 — 75.1 — Nuvera 1.4 0.5 1.9 2.1 Total $ 629.3 $ 652.1 $ 1,879.1 $ 1,933.1 Gross profit (loss) Americas $ 72.8 $ 78.8 $ 217.8 $ 225.7 EMEA 18.7 22.5 65.1 77.4 JAPIC 4.2 5.6 12.9 18.5 Lift truck business 95.7 106.9 295.8 321.6 Bolzoni 9.2 — 22.0 — Nuvera (0.3 ) (0.2 ) (1.3 ) (1.4 ) Total $ 104.6 $ 106.7 $ 316.5 $ 320.2 Operating profit (loss) Americas $ 23.4 $ 35.5 $ 55.1 $ 83.9 EMEA (1.4 ) 0.2 4.2 12.2 JAPIC (1.5 ) (0.1 ) (4.0 ) (0.3 ) Lift truck business 20.5 35.6 55.3 95.8 Bolzoni (2.5 ) — (1.8 ) — Nuvera (12.6 ) (6.6 ) (27.0 ) (18.5 ) Total $ 5.4 $ 29.0 $ 26.5 $ 77.3 Net income (loss) attributable to stockholders Americas $ 20.2 $ 24.3 $ 43.2 $ 57.9 EMEA 1.9 — 6.4 9.9 JAPIC (0.2 ) 0.6 (0.9 ) 0.8 Lift truck business 21.9 24.9 48.7 68.6 Bolzoni (2.0 ) — (1.9 ) — Nuvera (7.6 ) (4.0 ) (16.2 ) (11.1 ) Total $ 12.3 $ 20.9 $ 30.6 $ 57.5 SEPTEMBER 30 DECEMBER 31 Total assets Americas $ 848.0 $ 680.7 EMEA 430.9 412.0 JAPIC 138.3 140.6 Eliminations (188.3 ) (130.9 ) Lift truck business 1,228.9 1,102.4 Bolzoni 212.9 — Nuvera 33.0 17.4 Eliminations (178.3 ) (23.9 ) Total $ 1,296.5 $ 1,095.9 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 2016 2015 2016 2015 Income before income taxes $ 6.9 $ 28.4 $ 27.6 $ 75.5 Statutory taxes at 35% $ 2.4 $ 9.9 $ 9.7 $ 26.4 Permanent adjustments: Non-U.S. rate differences (1.9 ) (3.2 ) (4.6 ) (7.0 ) Equity interest earnings (0.4 ) (0.4 ) (1.1 ) (1.0 ) Valuation allowance 0.5 — 1.0 — Federal tax credits (0.6 ) — (1.1 ) — State income taxes (0.1 ) 0.8 0.1 2.0 Other 0.1 0.3 0.3 0.5 $ (2.4 ) $ (2.5 ) $ (5.4 ) $ (5.5 ) Discrete items: Valuation allowance (3.2 ) — (3.2 ) — Provision to return adjustments (2.0 ) (0.6 ) (2.0 ) (0.6 ) Other 0.1 0.6 (1.7 ) (2.6 ) Discrete items $ (5.1 ) $ — $ (6.9 ) $ (3.2 ) Income tax provision (benefit) $ (5.1 ) $ 7.4 $ (2.6 ) $ 17.7 Effective income tax rate (73.9 )% 26.1 % (9.4 )% 23.4 % |
Reclassifications Out Of Accu31
Reclassifications Out Of Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Reclassifications Out Of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table summarizes reclassifications out of accumulated other comprehensive income (loss) ("OCI") as recorded in the unaudited condensed consolidated statements of operations: Details about OCI Components Amount Reclassified from OCI Affected Line Item in the Statement Where Net Income Is Presented THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 2016 2015 2016 2015 Gain (loss) on cash flow hedges: Foreign exchange contracts $ (0.9 ) $ (2.1 ) $ (1.8 ) $ (6.5 ) Cost of sales Total before tax (0.9 ) (2.1 ) (1.8 ) (6.5 ) Income before income taxes Tax benefit 0.5 1.4 1.6 4.6 Income tax provision (benefit) Net of tax $ (0.4 ) $ (0.7 ) $ (0.2 ) $ (1.9 ) Net income Amortization of defined benefit pension items: Actuarial loss $ (0.7 ) $ (0.9 ) $ (2.3 ) $ (2.7 ) (a) Prior service credit — — 0.2 0.2 (a) Transition liability — — — (0.1 ) (a) Total before tax (0.7 ) (0.9 ) (2.1 ) (2.6 ) Income before income taxes Tax benefit 0.2 0.4 0.6 0.9 Income tax provision (benefit) Net of tax $ (0.5 ) $ (0.5 ) $ (1.5 ) $ (1.7 ) Net income Total reclassifications for the period $ (0.9 ) $ (1.2 ) $ (1.7 ) $ (3.6 ) (a) These OCI components are included in the computation of net pension cost (see Note 7 for additional details). |
Financial Instruments and Der32
Financial Instruments and Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Derivative [Line Items] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The following table summarizes the fair value of derivative instruments reflected on a gross basis by contract as recorded in the unaudited condensed consolidated balance sheets: Asset Derivatives Liability Derivatives Balance Sheet Location SEPTEMBER 30 DECEMBER 31 Balance Sheet Location SEPTEMBER 30 DECEMBER 31 Derivatives designated as hedging instruments Cash Flow Hedges Foreign currency exchange contracts Current Prepaid expenses and other $ 6.7 $ 2.5 Prepaid expenses and other $ 5.1 $ 0.6 Other current liabilities 0.9 3.2 Other current liabilities 0.3 10.9 Long-term Other non-current assets 0.8 — Other long-term liabilities 1.7 2.1 Total derivatives designated as hedging instruments $ 8.4 $ 5.7 $ 7.1 $ 13.6 Derivatives not designated as hedging instruments Cash Flow Hedges Interest rate swap agreements Current Other current liabilities $ — $ — Other current liabilities $ 0.5 $ 0.6 Long-term Other non-current assets — 0.3 Other long-term liabilities 0.8 — Foreign currency exchange contracts Current Prepaid expenses and other 0.6 1.1 Prepaid expenses and other 0.3 0.3 Other current liabilities 1.2 1.9 Other current liabilities 2.9 3.6 Total derivatives not designated as hedging instruments $ 1.8 $ 3.3 $ 4.5 $ 4.5 Total derivatives $ 10.2 $ 9.0 $ 11.6 $ 18.1 |
Schedule of Derivative Instruments in the Statement of Financial Position by Counterparty [Table Text Block] | The following table summarizes the offsetting of the fair value of derivative instruments on a gross basis by counterparty as recorded in the unaudited condensed consolidated balance sheets: Derivative Assets as of September 30, 2016 Derivative Liabilities as of September 30, 2016 Gross Amounts of Recognized Assets Gross Amounts Offset Net Amounts Presented Net Amount Gross Amounts of Recognized Liabilities Gross Amounts Offset Net Amounts Presented Net Amount Cash Flow Hedges Interest rate swap agreements $ — $ — $ — $ — $ 1.3 $ — $ 1.3 $ 1.3 Foreign currency exchange contracts 2.7 (2.7 ) — — 2.8 (2.7 ) 0.1 0.1 Total derivatives $ 2.7 $ (2.7 ) $ — $ — $ 4.1 $ (2.7 ) $ 1.4 $ 1.4 Derivative Assets as of December 31, 2015 Derivative Liabilities as of December 31, 2015 Gross Amounts of Recognized Assets Gross Amounts Offset Net Amounts Presented Net Amount Gross Amounts of Recognized Liabilities Gross Amounts Offset Net Amounts Presented Net Amount Cash Flow Hedges Interest rate swap agreements $ 0.3 $ (0.3 ) $ — $ — $ 0.6 $ (0.3 ) $ 0.3 $ 0.3 Foreign currency exchange contracts 2.7 (2.7 ) — — 11.5 (2.7 ) 8.8 8.8 Total derivatives $ 3.0 $ (3.0 ) $ — $ — $ 12.1 $ (3.0 ) $ 9.1 $ 9.1 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) Location of Gain or (Loss) Reclassified from OCI into Income (Effective Portion) Amount of Gain or (Loss) Reclassified from OCI into Income (Effective Portion) Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) THREE MONTHS ENDED NINE MONTHS ENDED THREE MONTHS ENDED NINE MONTHS ENDED THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 SEPTEMBER 30 Derivatives designated as hedging instruments 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 Cash Flow Hedges Foreign currency exchange contracts $ (0.7 ) $ (1.1 ) $ 7.7 $ (4.1 ) Cost of sales $ (0.9 ) $ (2.1 ) $ (1.8 ) $ (6.5 ) Cost of sales $ (0.1 ) $ — $ (0.2 ) $ — Total $ (0.7 ) $ (1.1 ) $ 7.7 $ (4.1 ) $ (0.9 ) $ (2.1 ) $ (1.8 ) $ (6.5 ) $ (0.1 ) $ — $ (0.2 ) $ — Amount of Gain or (Loss) Recognized in Income on Derivative THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 Derivatives Not Designated as Hedging Instruments Location of Gain or (Loss) Recognized in Income on Derivative 2016 2015 2016 2015 Cash Flow Hedges Interest rate swap agreements Other $ 0.5 $ (1.0 ) $ (1.2 ) $ (1.6 ) Foreign currency exchange contracts Cost of sales (0.2 ) 2.7 0.3 2.4 Total $ 0.3 $ 1.7 $ (0.9 ) $ 0.8 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Schedule of Costs of Retirement Plans [Table Text Block] | THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 2016 2015 2016 2015 U.S. Pension Service cost $ — $ — $ — $ — Interest cost 0.7 0.7 2.2 2.2 Expected return on plan assets (1.3 ) (1.4 ) (3.7 ) (4.2 ) Settlement loss — 1.2 — 1.2 Amortization of actuarial loss 0.4 0.4 1.2 1.2 Amortization of prior service credit — — (0.2 ) (0.2 ) Total $ (0.2 ) $ 0.9 $ (0.5 ) $ 0.2 Non-U.S. Pension Service cost $ — $ — $ 0.1 $ 0.1 Interest cost 1.2 1.4 3.8 4.2 Expected return on plan assets (2.1 ) (2.4 ) (6.7 ) (7.2 ) Amortization of actuarial loss 0.3 0.5 1.1 1.5 Amortization of transition liability — — — 0.1 Total $ (0.6 ) $ (0.5 ) $ (1.7 ) $ (1.3 ) |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Schedule of Inventory, Current [Table Text Block] | SEPTEMBER 30 DECEMBER 31 Finished goods and service parts $ 184.3 $ 153.0 Raw materials and work in process 230.8 192.0 Total manufactured inventories 415.1 345.0 LIFO reserve (39.1 ) (40.4 ) Total inventory $ 376.0 $ 304.6 |
Product Warranties (Tables)
Product Warranties (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Product Liability Contingency [Line Items] | |
Schedule of Product Warranty Liability [Table Text Block] | 2016 Balance at January 1 $ 55.5 Current year warranty expense 25.2 Change in estimate related to pre-existing warranties (5.9 ) Payments made (22.2 ) Foreign currency effect 0.3 Balance at September 30 $ 52.9 |
Guarantees (Tables)
Guarantees (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Guarantees [Abstract] | |
Schedule of Guarantor Obligations [Table Text Block] | HYGFS Total Total recourse or repurchase obligations $ 135.7 $ 165.3 Less: exposure limited for certain dealers 34.4 34.4 Plus: 7.5% of original loan balance 7.5 7.5 108.8 138.4 Incremental obligation related to guarantee to WF 183.9 183.9 Total exposure related to guarantees $ 292.7 $ 322.3 |
Equity Investments (Tables)
Equity Investments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments [Table Text Block] | THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 2016 2015 2016 2015 Revenues $ 89.3 $ 79.3 $ 259.1 $ 236.3 Gross profit $ 27.8 $ 23.4 $ 79.6 $ 71.8 Income from continuing operations $ 6.0 $ 5.6 $ 17.1 $ 15.6 Net income $ 6.0 $ 5.6 $ 17.1 $ 15.6 |
Acquisitions Acquisitions (Tabl
Acquisitions Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Business Acquisition [Line Items] | |
Business Combination, Provisional Information, Initial Accounting Incomplete, Items [Table Text Block] | Acquired Assets and Liabilities Increase/(Decrease) in Fair Value Inventory $ 2.2 Property, plant and equipment (0.8 ) Intangible assets 3.4 Other liabilities 0.4 Noncontrolling interest 0.9 Goodwill (6.1 ) |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Acquired Assets and Liabilities Preliminary Fair Value Cash $ 8.0 Accounts receivable 34.0 Inventories 31.5 Property, plant and equipment 43.3 Intangible Assets 54.8 Other assets 0.5 Total assets acquired $ 172.1 Accounts payable 32.7 Total debt 44.3 Long-term deferred tax liabilities 11.5 Other liabilities 8.0 Total liabilities assumed $ 96.5 Noncontrolling interest 5.7 Net assets acquired $ 69.9 Initial purchase price $ 60.9 Interest acquired in mandatory tender offer $ 63.2 Goodwill $ 54.2 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | Acquired Intangible Assets Preliminary Fair Value Weighted-Average Useful Lives (Years) Customer relationships $ 22.1 13 Trademarks 17.1 Indefinite Engineering drawings 12.5 10 Patents 2.1 10 Non-compete agreement 1.0 3 Total $ 54.8 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | September 30, 2016 Gross Carrying Amount Accumulated Amortization Net Balance Intangible assets not subject to amortization Trademarks $ 16.8 $ — $ 16.8 Intangible assets subject to amortization Customer and contractual relationships 29.1 (2.1 ) 27.0 Patents and technology 17.0 (1.6 ) 15.4 Trademarks 1.2 (0.1 ) 1.1 Total $ 64.1 $ (3.8 ) $ 60.3 December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Balance Customer and contractual relationships $ 0.1 $ — $ 0.1 Patents and technology 2.8 (0.4 ) 2.4 Trademarks 1.2 (0.1 ) 1.1 Total $ 4.1 $ (0.5 ) $ 3.6 |
Schedule of Goodwill [Table Text Block] | Carrying Amount of Goodwill Americas Bolzoni Total Balance at January 1, 2016 $ — $ — $ — Additions 1.7 54.2 55.9 Foreign currency translation — (2.8 ) (2.8 ) Balance at September 30, 2016 $ 1.7 $ 51.4 $ 53.1 |
Basis of Presentation (Details)
Basis of Presentation (Details) | Sep. 30, 2016 |
HYGFS [Member] | |
Equity Method Investment, Ownership Percentage | 20.00% |
SN [Member] | |
Equity Method Investment, Ownership Percentage | 50.00% |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||
Revenues | $ 629.3 | $ 652.1 | $ 1,879.1 | $ 1,933.1 | |
Gross profit (loss) | 104.6 | 106.7 | 316.5 | 320.2 | |
Operating profit (loss) | 5.4 | 29 | 26.5 | 77.3 | |
Net income (loss) attributable to stockholders | 12.3 | 20.9 | 30.6 | 57.5 | |
Assets | 1,296.5 | 1,296.5 | $ 1,095.9 | ||
Geography Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Assets | (188.3) | (188.3) | (130.9) | ||
Consolidation, Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Assets | (178.3) | (178.3) | (23.9) | ||
Americas [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 408.4 | 454.1 | 1,237.4 | 1,333.9 | |
Gross profit (loss) | 72.8 | 78.8 | 217.8 | 225.7 | |
Operating profit (loss) | 23.4 | 35.5 | 55.1 | 83.9 | |
Net income (loss) attributable to stockholders | 20.2 | 24.3 | 43.2 | 57.9 | |
Assets | 848 | 848 | 680.7 | ||
Europe [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 137.1 | 145.1 | 439.7 | 448.9 | |
Gross profit (loss) | 18.7 | 22.5 | 65.1 | 77.4 | |
Operating profit (loss) | (1.4) | 0.2 | 4.2 | 12.2 | |
Net income (loss) attributable to stockholders | 1.9 | 0 | 6.4 | 9.9 | |
Assets | 430.9 | 430.9 | 412 | ||
Asia-Pacific [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 46.2 | 52.4 | 125 | 148.2 | |
Gross profit (loss) | 4.2 | 5.6 | 12.9 | 18.5 | |
Operating profit (loss) | (1.5) | (0.1) | (4) | (0.3) | |
Net income (loss) attributable to stockholders | (0.2) | 0.6 | (0.9) | 0.8 | |
Assets | 138.3 | 138.3 | 140.6 | ||
Lift-truck business [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 591.7 | 651.6 | 1,802.1 | 1,931 | |
Gross profit (loss) | 95.7 | 106.9 | 295.8 | 321.6 | |
Operating profit (loss) | 20.5 | 35.6 | 55.3 | 95.8 | |
Net income (loss) attributable to stockholders | 21.9 | 24.9 | 48.7 | 68.6 | |
Assets | 1,228.9 | 1,228.9 | 1,102.4 | ||
Bolzoni [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 36.2 | 0 | 75.1 | 0 | |
Gross profit (loss) | 9.2 | 0 | 22 | 0 | |
Operating profit (loss) | (2.5) | 0 | (1.8) | 0 | |
Net income (loss) attributable to stockholders | (2) | 0 | (1.9) | 0 | |
Assets | 212.9 | 212.9 | 0 | ||
Nuvera [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1.4 | 0.5 | 1.9 | 2.1 | |
Gross profit (loss) | (0.3) | (0.2) | (1.3) | (1.4) | |
Operating profit (loss) | (12.6) | (6.6) | (27) | (18.5) | |
Net income (loss) attributable to stockholders | (7.6) | $ (4) | (16.2) | $ (11.1) | |
Assets | $ 33 | $ 33 | $ 17.4 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | $ 6.9 | $ 28.4 | $ 27.6 | $ 75.5 |
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | 2.4 | 9.9 | 9.7 | 26.4 |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount | (1.9) | (3.2) | (4.6) | (7) |
Effective Income Tax Rate Reconciliation, Equity in Earnings (Losses) of Unconsolidated Subsidiary, Amount | (0.4) | (0.4) | (1.1) | (1) |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | 0.5 | 0 | 1 | 0 |
Effective Income Tax Rate Reconciliation, Tax Credit, Amount | (0.6) | 0 | (1.1) | 0 |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount | (0.1) | 0.8 | 0.1 | 2 |
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | 0.1 | 0.3 | 0.3 | 0.5 |
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | (2.4) | (2.5) | (5.4) | (5.5) |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Discrete Amount | (3.2) | 0 | (3.2) | 0 |
Effective Income Tax Rate Reconciliation, Provision to Return Adjustments, Discrete Amount | 2 | 0.6 | 2 | 0.6 |
Effective Income Tax Rate Reconciliation, Other Discrete Amount | 0.1 | 0.6 | (1.7) | (2.6) |
Other Tax Expense (Benefit) | (5.1) | 0 | (6.9) | (3.2) |
Income tax provision | $ (5.1) | $ 7.4 | $ (2.6) | $ 17.7 |
Effective Income Tax Rate Reconciliation, Percent | (73.90%) | 26.10% | (9.40%) | 23.40% |
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Discrete Amount | $ 4 | $ 3.7 | ||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Amount | $ 1.6 |
Reclassifications Out Of Accu43
Reclassifications Out Of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | $ (0.9) | $ (2.1) | $ (1.8) | $ (6.5) | |
Derivative Instruments, Gain (Loss) Reclassified From Accumulated OCI into Income, Effective Portion, Tax | 0.5 | 1.4 | 1.6 | 4.6 | |
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Net of Tax | (0.4) | (0.7) | (0.2) | (1.9) | |
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, before Tax | [1] | (0.7) | (0.9) | (2.3) | (2.7) |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Net Prior Service Cost (Credit) Arising During Period, before Tax | [1] | 0 | 0 | 0.2 | 0.2 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Transition Asset (Obligation), before Tax | [1] | 0 | 0 | 0 | (0.1) |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, before Tax | (0.7) | (0.9) | (2.1) | (2.6) | |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Tax | 0.2 | 0.4 | 0.6 | 0.9 | |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Net of Tax | (0.5) | (0.5) | (1.5) | (1.7) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (0.9) | (1.2) | (1.7) | (3.6) | |
Cost of Sales [Member] | Foreign Exchange Contract [Member] | |||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | $ (0.9) | $ (2.1) | $ (1.8) | $ (6.5) | |
Description of Location of Gain (Loss) on Foreign Currency Derivative in Financial Statements | Cost of sales | ||||
Gross Pension Costs Reclassified to Net Income [Member] | |||||
Pension and Postretirement Plans, Income Statement Location of Net Periodic Pension Expense Reclassified from Accumulated OCI | (a) | ||||
Income Before Taxes [Member] | |||||
Derivative Instruments, Income Statement Location of Gain (Loss) Reclassified from Accumulated OCI | Income before income taxes | ||||
Pension and Postretirement Plans, Income Statement Location of Net Periodic Pension Expense Reclassified from Accumulated OCI | Income before income taxes | ||||
Tax (Expense) Benefit [Member] | |||||
Derivative Instruments, Income Statement Location of Gain (Loss) Reclassified from Accumulated OCI | Income tax provision (benefit) | ||||
Pension and Postretirement Plans, Income Statement Location of Net Periodic Pension Expense Reclassified from Accumulated OCI | Income tax provision (benefit) | ||||
Net Income (Loss) [Member] | |||||
Derivative Instruments, Income Statement Location of Gain (Loss) Reclassified from Accumulated OCI | Net income | ||||
Pension and Postretirement Plans, Income Statement Location of Net Periodic Pension Expense Reclassified from Accumulated OCI | Net income | ||||
[1] | (a) These OCI components are included in the computation of net pension cost (see Note 7 for additional details). |
Financial Instruments and Der44
Financial Instruments and Derivative Financial Instruments (Balance Sheet) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Derivative Instruments in Hedges, Assets, at Fair Value | $ 8.4 | $ 5.7 |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 1.8 | 3.3 |
Derivative Asset, Fair Value, Gross Asset | 10.2 | 9 |
Derivative Instruments in Hedges, Liabilities, at Fair Value | 7.1 | 13.6 |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 4.5 | 4.5 |
Derivative Liability, Fair Value, Gross Liability | 11.6 | 18.1 |
Designated as Hedging Instrument [Member] | Prepaid expenses and other [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign Currency Cash Flow Hedge Asset at Fair Value | 6.7 | 2.5 |
Foreign Currency Cash Flow Hedge Liability at Fair Value | 5.1 | 0.6 |
Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign Currency Cash Flow Hedge Asset at Fair Value | 0.9 | 3.2 |
Foreign Currency Cash Flow Hedge Liability at Fair Value | 0.3 | 10.9 |
Designated as Hedging Instrument [Member] | Other Noncurrent Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign Currency Cash Flow Hedge Asset at Fair Value | 0.8 | 0 |
Designated as Hedging Instrument [Member] | Other Noncurrent Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign Currency Cash Flow Hedge Liability at Fair Value | 1.7 | 2.1 |
Not Designated as Hedging Instrument [Member] | Prepaid expenses and other [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign Currency Cash Flow Hedge Asset at Fair Value | 0.6 | 1.1 |
Foreign Currency Cash Flow Hedge Liability at Fair Value | 0.3 | 0.3 |
Not Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | 0 |
Foreign Currency Cash Flow Hedge Asset at Fair Value | 1.2 | 1.9 |
Interest Rate Cash Flow Hedge Liability at Fair Value | 0.5 | 0.6 |
Foreign Currency Cash Flow Hedge Liability at Fair Value | 2.9 | 3.6 |
Not Designated as Hedging Instrument [Member] | Other Noncurrent Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | 0.3 |
Not Designated as Hedging Instrument [Member] | Other Noncurrent Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Interest Rate Cash Flow Hedge Liability at Fair Value | $ 0.8 | $ 0 |
Financial Instruments and Der45
Financial Instruments and Derivative Financial Instruments (Offsetting) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset by Counterparty | $ 2.7 | $ 3 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | (2.7) | (3) |
Derivative Assets | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability by Counterparty | 4.1 | 12.1 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | (2.7) | (3) |
Derivative Liabilities | 1.4 | 9.1 |
Cash Flow Hedging [Member] | Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset by Counterparty | 0 | 0.3 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | (0.3) |
Derivative Assets | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability by Counterparty | 1.3 | 0.6 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | (0.3) |
Derivative Liabilities | 1.3 | 0.3 |
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset by Counterparty | 2.7 | 2.7 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | (2.7) | (2.7) |
Derivative Assets | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability by Counterparty | 2.8 | 11.5 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | (2.7) | (2.7) |
Derivative Liabilities | $ 0.1 | $ 8.8 |
Financial Instruments and Der46
Financial Instruments and Derivative Financial Instruments (Income Statement) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 0.3 | $ 1.7 | $ (0.9) | $ 0.8 |
Foreign Exchange Contract [Member] | Cost of Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Description of Location of Gain (Loss) on Foreign Currency Derivative in Financial Statements | Cost of sales | |||
Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (0.7) | (1.1) | $ 7.7 | (4.1) |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (0.9) | (2.1) | (1.8) | (6.5) |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | (0.1) | 0 | (0.2) | 0 |
Cash Flow Hedging [Member] | Interest Rate Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Interest Rate Derivative Instruments Not Designated as Hedging Instruments | 0.5 | (1) | $ (1.2) | (1.6) |
Cash Flow Hedging [Member] | Interest Rate Contract [Member] | Other Expense [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Description of Location of Gain (Loss) on Interest Rate Derivative Instruments Not Designated as Hedging Instruments in Financial Statements | Other | |||
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (0.7) | (1.1) | $ 7.7 | (4.1) |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (0.9) | (2.1) | (1.8) | (6.5) |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | (0.1) | 0 | (0.2) | 0 |
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ (0.2) | $ 2.7 | $ 0.3 | $ 2.4 |
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | Cost of Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Description of Location of Gain (Loss) on Foreign Currency Derivative in Financial Statements | Cost of sales | |||
Description of Location of Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments in Financial Statements | Cost of sales |
Financial Instruments and Der47
Financial Instruments and Derivative Financial Instruments (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Derivative [Line Items] | ||
Long-term Debt | $ 127.8 | $ 32.1 |
Long-term Debt, Fair Value | $ 127.8 | 32.1 |
Discussion of Objectives for Using Foreign Currency Derivative Instruments | The Company uses forward foreign currency exchange contracts to partially reduce risks related to transactions denominated in foreign currencies. These contracts hedge firm commitments and forecasted transactions relating to cash flows associated with sales and purchases denominated in non-functional currencies. The Company offsets fair value amounts related to foreign currency exchange contracts executed with the same counterparty. Changes in the fair value of forward foreign currency exchange contracts that are effective as hedges are recorded in OCI. Deferred gains or losses are reclassified from OCI to the unaudited condensed consolidated statements of operations in the same period as the gains or losses from the underlying transactions are recorded and are generally recognized in cost of sales. The ineffective portion of derivatives that are classified as hedges is immediately recognized in earnings and is also generally recognized in cost of sales. | |
Objectives for Using Net Investment Hedging Instruments | Certain of the Company's forward foreign currency contracts were designated as net investment hedges of the Company's net investment in its foreign subsidiaries. For derivative instruments that were designated and qualified as a hedge of a net investment in foreign currency, the gain or loss was reported in other comprehensive income as part of the cumulative translation adjustment to the extent it was effective. The Company utilizes the forward-rate method of assessing hedge effectiveness. Any ineffective portion of net investment hedges would be recognized in the unaudited condensed consolidated statement of operations in the same period as the change. | |
Discussion of Objectives for Using Interest Rate Derivative Instruments | The Company has interest rate swap agreements that do not meet the criteria for hedge accounting. The terms of the interest rate swap agreements require the Company to receive a variable interest rate based upon the three-month LIBOR and pay a fixed interest rate. Changes in the fair value of interest rate swap agreements are immediately recognized in earnings and included on the line “Other” in the “Other (income) expense” section of the unaudited condensed consolidated statements of operations. | |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 2.2 | |
Interest Rate Derivatives, at Fair Value, Net | 1.3 | 0.3 |
Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 100 | |
Foreign Exchange Contract [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 591.7 | 634.7 |
Derivative, Fair Value, Net | $ 0.1 | $ (8.8) |
Retirement Benefit Plans (Detai
Retirement Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Settlement loss | $ 1.2 | |||
United States Pension Plan of US Entity [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 0 | $ 0 | $ 0 | 0 |
Interest cost | 0.7 | 0.7 | 2.2 | 2.2 |
Expected return on plan assets | (1.3) | (1.4) | (3.7) | (4.2) |
Settlement loss | 0 | (1.2) | 0 | (1.2) |
Amortization of actuarial loss | 0.4 | 0.4 | 1.2 | 1.2 |
Amortization of prior service credit | 0 | 0 | (0.2) | (0.2) |
Total | (0.2) | 0.9 | (0.5) | 0.2 |
Foreign Pension Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 0 | 0 | 0.1 | 0.1 |
Interest cost | 1.2 | 1.4 | 3.8 | 4.2 |
Expected return on plan assets | (2.1) | (2.4) | (6.7) | (7.2) |
Amortization of actuarial loss | 0.3 | 0.5 | 1.1 | 1.5 |
Defined Benefit Plan, Amortization of Transition Obligations (Assets) | 0 | 0 | 0 | 0.1 |
Total | $ (0.6) | $ (0.5) | $ (1.7) | $ (1.3) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Finished goods and service parts | $ 184.3 | $ 153 |
Raw materials and work in process | 230.8 | 192 |
Total manufactured inventories | 415.1 | 345 |
LIFO reserve | (39.1) | (40.4) |
Total inventory | $ 376 | $ 304.6 |
Percentage of LIFO Inventory | 53.00% | 58.00% |
Current and Long-Term Financing
Current and Long-Term Financing (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Line of Credit Facility [Line Items] | |
Other Borrowings | $ 73.8 |
Loan Processing Fee | $ 1.6 |
HY revolving credit facility [Member] | |
Line of Credit Facility [Line Items] | |
Debt, Weighted Average Interest Rate | 2.00% |
HY revolving credit facility [Member] | Line of Credit [Member] | |
Line of Credit Facility [Line Items] | |
Letters of Credit Outstanding, Amount | $ 17.1 |
Line of Credit Facility, Maximum Borrowing Capacity | 240 |
Long-term Line of Credit | 54 |
Line of Credit Facility, Remaining Borrowing Capacity | $ 168.9 |
Line of Credit Facility, Borrowing Capacity, Description | The Facility consists of a U.S. revolving credit facility in the initial amount of $140.0 million and a non-U.S. revolving credit facility in the initial amount of $100.0 million. The Facility can be increased up to $340.0 million over the term of the agreement in minimum increments of $10.0 million subject to certain conditions. |
Debt Instrument, Collateral Amount | $ 495 |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.35% |
Dividend Payment Restrictions Schedule, Description | limit additional borrowings and investments of the Company and its subsidiaries subject to certain thresholds, as defined in the Facility, and limits the payment of dividends. If the minimum availability threshold, as defined in the Facility, is greater than fifteen percent and less than twenty percent for both total and U.S. revolving credit facilities, the Company may pay dividends subject to maintaining a certain level of availability prior to and upon payment of a dividend and achieving a minimum fixed charge coverage ratio of 1.00 to 1.00, as defined in the Facility. If the minimum availability threshold, as defined in the Facility, is greater than twenty percent for both total and U.S. revolving credit facilities, the Company may pay dividends without any minimum fixed charge coverage ratio requirement. The Facility also requires the Company to achieve a minimum fixed charge coverage ratio in certain circumstances in which total excess availability is less than ten percent of the total commitments under the Facility or excess availability under the U.S. revolving credit facility is less than ten percent of the U.S. revolver commitments, as defined in the Facility. At September 30, 2016, the Company was in compliance with the covenants in the Facility. |
HY revolving credit facility [Member] | Domestic Line of Credit [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Interest Rate at Period End | 2.00% |
HY revolving credit facility [Member] | Foreign Line of Credit [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Interest Rate at Period End | 1.50% |
HY revolving credit facility [Member] | Prime Rate [Member] | Domestic Line of Credit [Member] | |
Line of Credit Facility [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 0.50% |
HY revolving credit facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Domestic Line of Credit [Member] | |
Line of Credit Facility [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 1.50% |
Product Warranties (Details)
Product Warranties (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Product Liability Contingency [Line Items] | ||
Product Warranty Accrual | $ 52.9 | $ 55.5 |
Product Warranties Issued | 25.2 | |
Product Warranty Accrual, Preexisting, Increase (Decrease) | (5.9) | |
Product Warranties Payments | (22.2) | |
Product Warranties Currency Translation, Increase (Decrease) | $ 0.3 | |
Standard warranty [Member] | ||
Product Liability Contingency [Line Items] | ||
Standard Product Warranty Description | twelve months or 1,000 to 2,000 hours | |
Additional Component Standard Warranty [Member] | ||
Product Liability Contingency [Line Items] | ||
Standard Product Warranty Description | two to three years or 4,000 to 6,000 hours | |
Extended warranty [Member] | ||
Product Liability Contingency [Line Items] | ||
Extended Product Warranty Description | two to five years or up to 2,400 to 10,000 hours |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Guarantor Obligations [Line Items] | ||
Guarantor Obligations, Term | Terms of the third-party financing arrangements for which the Company is providing recourse or repurchase obligations generally range from one to five years. | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 165.3 | $ 179.8 |
Guarantor Obligations, Collateral Held Directly or by Third Parties | $ 210.4 | |
Percentage of loan losses guaranteed | 7.50% | |
Loan losses guaranteed | $ 7.5 | |
Net guarantee of outstanding debt | 138.4 | |
Guarantor Obligations, Related Party Disclosures | 135.7 | |
Guarantees, Fair Value Disclosure | 322.3 | |
Property Lease Guarantee [Member] | ||
Guarantor Obligations [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | 34.4 | |
Financial Guarantee [Member] | ||
Guarantor Obligations [Line Items] | ||
Guarantor Obligations, Related Party Disclosures | 183.9 | |
Receivable [Domain] | ||
Guarantor Obligations [Line Items] | ||
Guarantor Obligations, Collateral Held Directly or by Third Parties | 221.2 | |
HYGFS [Member] | ||
Guarantor Obligations [Line Items] | ||
Net guarantee of outstanding debt | $ 108.8 | |
Percentage of loans guaranteed to joint venture | 20.00% | |
Notes Payable, Related Party Due to Parent | $ 1,000 | |
Contractual Obligation | 205.7 | |
Guarantees, Fair Value Disclosure | $ 292.7 |
Equity Investments (Details)
Equity Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Revenues | $ 89.3 | $ 79.3 | $ 259.1 | $ 236.3 | |
Gross profit | 27.8 | 23.4 | 79.6 | 71.8 | |
Income from continuing operations | 6 | 5.6 | 17.1 | 15.6 | |
Net income | 6 | $ 5.6 | 17.1 | $ 15.6 | |
Equity Method Investments | $ 48.6 | $ 48.6 | $ 42.9 | ||
HYGFS [Member] | |||||
Equity Method Investment, Ownership Percentage | 20.00% | 20.00% | |||
Equity Method Investments | $ 12.6 | $ 12.6 | 14.8 | ||
SN [Member] | |||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | |||
Equity Method Investments | $ 35.5 | $ 35.5 | $ 28.1 | ||
Bolzoni [Member] | |||||
Equity Method Investments | $ 0.5 | $ 0.5 |
Acquisitions Acquisitions (Deta
Acquisitions Acquisitions (Details) € in Millions, $ in Millions | Apr. 01, 2016USD ($) | Apr. 01, 2016EUR (€) | Sep. 30, 2016USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2016EUR (€) | Sep. 30, 2016USD ($) | Dec. 31, 2015USD ($) |
Business Acquisition [Line Items] | |||||||
Finite-lived Intangible Assets Acquired | $ 64.1 | ||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Amortization | $ 2.3 | ||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments Related to Previous Period | 0.4 | ||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Inventory | 2.2 | ||||||
Goodwill | 53.1 | $ 53.1 | 53.1 | $ 0 | |||
Business Acquisition, Transaction Costs | 6.1 | 6.1 | 6.1 | ||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Property, Plant, and Equipment | (0.8) | ||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Intangibles | 3.4 | ||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Liabilities | 0.4 | ||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Equity Interests | 0.9 | ||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Goodwill | (6.1) | ||||||
Cost of Sales [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments Related to Previous Period | 2.2 | ||||||
Customer Relationships [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived Intangible Assets Acquired | 29.1 | ||||||
Trademarks [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Indefinite-lived Intangible Assets Acquired | 16.8 | ||||||
Bolzoni [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Payments to Acquire Businesses, Gross | $ 60.9 | € 53.5 | 62.2 | € 55.4 | |||
Equity Method Investment, Ownership Percentage | 50.50% | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 8 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 34 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 31.5 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment [Abstract] | 43.3 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 54.8 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 0.5 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 172.1 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | 32.7 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | 44.3 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent | 11.5 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | 8 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 96.5 | ||||||
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value | 5.7 | ||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest | 69.9 | ||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Fair Value | 63.2 | ||||||
Goodwill | $ 54.2 | $ 54.2 | 54.2 | ||||
Bolzoni [Member] | Customer Relationships [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived Intangible Assets Acquired | $ 22.1 | ||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life In Years | 13 | ||||||
Bolzoni [Member] | Other Intangible Assets [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived Intangible Assets Acquired | $ 12.5 | ||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life In Years | 10 | ||||||
Bolzoni [Member] | Patents [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived Intangible Assets Acquired | $ 2.1 | ||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life In Years | 10 | ||||||
Bolzoni [Member] | Noncompete Agreements [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived Intangible Assets Acquired | $ 1 | ||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life In Years | 3 | ||||||
Bolzoni [Member] | Trademarks [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Indefinite-lived Intangible Assets Acquired | $ 17.1 | ||||||
HYG Telematics [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 8.1 |
Goodwill and Intangible Asset55
Goodwill and Intangible Assets (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived Intangible Assets Acquired | $ 64.1 | ||
Amortization of Intangible Assets | 3.8 | $ 0.5 | |
Finite-Lived Intangible Assets, Net | 60.3 | 3.6 | $ 4.1 |
Goodwill | 53.1 | 0 | |
Goodwill, Acquired During Period | 55.9 | ||
Goodwill, Foreign Currency Translation Gain (Loss) | (2.8) | ||
Americas [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 1.7 | 0 | |
Goodwill, Acquired During Period | 1.7 | ||
Goodwill, Foreign Currency Translation Gain (Loss) | 0 | ||
Bolzoni [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 51.4 | 0 | |
Goodwill, Acquired During Period | 54.2 | ||
Goodwill, Foreign Currency Translation Gain (Loss) | (2.8) | ||
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived Intangible Assets Acquired | 29.1 | ||
Amortization of Intangible Assets | 2.1 | 0 | |
Finite-Lived Intangible Assets, Net | 27 | 0.1 | 0.1 |
Patented Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived Intangible Assets Acquired | 17 | ||
Amortization of Intangible Assets | 1.6 | 0.4 | |
Finite-Lived Intangible Assets, Net | 15.4 | 2.4 | 2.8 |
Trademarks [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived Intangible Assets Acquired | 1.2 | ||
Amortization of Intangible Assets | 0.1 | 0.1 | |
Finite-Lived Intangible Assets, Net | 1.1 | $ 1.1 | $ 1.2 |
Trademarks [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived Intangible Assets Acquired | 16.8 | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 16.8 |